To: Stoctrash who wrote (26316 ) 12/8/1997 8:15:00 PM From: John Rieman Read Replies (1) | Respond to of 50808
Chinese chip importers to benefit from Tarrif reforms. Standard setting will accelerate China's domestic market. Maybe they want d-boxes??????????????????????scmp.com TuesdayÿÿDecember 9ÿÿ1997 Draft in train on standards for electronics <Picture> Prosperity threat: IBM general manager Richmond Lo believes any attempt by mainland authorities to use standards as a trade protectionist tool could pose a long-term threat to overall prosperity. Picture by May Tse ELLA LEE As questions of conformity with international norms continue to be raised, Beijing has announced a plan to draft standards on consumer electronics goods. The Ministry of Electronics Industry is drafting standards for DVD and VCD players, hybrid PC/VCD machines, digital cameras, digital-audio tape players and other products. Meanwhile, the Ministry of Post and Telecommunications will create standards for analogue and digital phones. Only goods conforming to the standards will be allowed to be sold. Mainland standards are expected to differ from existing international guidelines, where intellectual property is often tightly controlled by firms based outside China, according to a report on Internet news service, TechWeb. At least one foreign IT company is worried. "An appropriate level of standardisation can accelerate economic development, but excessive control, which appears as a kind of protectionism bringing about a closed market, will only turn down the prosperity in the long run," said Richmond Lo, general manager of the IBM personal system group for greater China. Regulation of commercial activities in the mainland was increasing, said Mr Lo, but it had to be conducted properly. "It will be very dangerous for China to follow the footsteps of South Korea." Standardising consumer electronics can be seen as an attempt by the Beijing authorities to add legitimacy to its industry, says Dane Anderson of International Data Corp. "But it can also be a practice of protectionism as in South Korea and Japan, where customs officials take weeks to test and verify imports, delaying the products to market." US trade officials have cautioned against reading too much into the plan until more was known, according to a TechWeb report. However, a positive step by the mainland authorities might be the recent signing of the World Trade Organisation's agreement to eliminate tariffs on all IT imports by 2000. Besides multinational firms, domestic vendors who import chips and components for making PCs are likely to benefit. The agreement also will hit the grey market, as most IT products from Hong Kong to the mainland have been imported in ways to avoid paying tariffs, according to consultants New Century Group.