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Japan might withdraw MFN status given to China
Aug '10
According to recent reports from Japanese media, Japanese government has expressed it would reconsider the implementation of the most favored nation treatment system provided to China.

At present, China exports gloves, handkerchiefs, blankets, knee pads and other commodities to Japan by using the "most favored nation" treatment system, in addition, China's fireworks, glass products and industrial products are also constantly entering Japanese market under the system.

However, economic researcher Xu Fengxian of the Chinese Academy of Social Sciences says that China's exports to Japan will not be greatly impacted, even if Japan has adopted such a policy adjustment. The inroads made by Chinese products in to its markets have got the Japanese upset.

China has just overtaken Japan to become the world's second largest economy. China's per capita GDP has reached US $4,000, achieving the levels of those in moderately developed countries.

In accordance with the provisions of WTO, MFN is the preferential tariff policy developed for developing countries; it is normal for Japan to cancel MFN on China at this time.

According to data from Japanese Finance Ministry, among the exported commodities to Japan by using the "most favored nation" system in 2008, Chinese commodities accounted for 77.9 percent, accounting for 10 percent of the market share in Japan.

Fibre2fashion News Desk

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