China's commerce ministry, the trade watchdog, yesterday set up 19 service centres in a bid to help Chinese companies better acquaint themselves with possible technical barriers in foreign trade.

These centres, established under relevant chambers of commerce and research agencies, will cover the export of a large number of commodities ranging from farm products, air conditioners and toys to silk.

"We expect that the newly established centres will offer powerful support for companies to overcome the technical barriers of foreign countries," said Vice-Minister of Commerce Wei Jianguo.

Technical trade barriers have become a crucial issue affecting the business of Chinese exporters in various fields. Some developed nations, making full use of their technological advantage, have adopted a series of special standards and regulations within the areas of safety and environmental protection.

Statistics from the ministry indicate that, in recent years, two-thirds of Chinese exporters have reported suffering from technical barriers when exporting goods. Two-fifths of exported goods faced barriers, causing economic losses of nearly US$20 billion for the country every year.

The centres will be responsible for collecting information on access standards to the target markets of Chinese companies such as technical standards, food safety standards, labour standards and intellectual property rights protection regulations.

They will then update guidebooks on the technical standards of major export destinations, Wei said.

The ministry released in 2005 the first batch of guidebooks detailing technical standards on export goods. The goods include honey, eel, leather goods, textile products, clothes, aluminium materials, air conditioners and electrical tools.

The ministry will release, by the end of 2006, 100 guidebooks on key export goods, which will involve an export volume of more than US$200 billion.

Wei expected that the booklets would help to minimize the negative effects of foreign technological barriers on China's exports.

The centres will give exporters information about important changes in access to major markets and provide them with advice and solutions.

Based on studies of foreign technological standards, the centres should also participate in drawing up domestic standards and globally adopted technological standards.

Wei said although China doubled its exports to US$762 billion in 2005, over the 2000 figure, the country is challenged by its lack of resources, shortage of core competitiveness and increasing trade frictions.

China's traditional competitive advantage in labour resources is also expected to be weakened in coming years as average wages continue to increase.

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