The Chinese government is telling enterprises to prepare to meet
the latest EU regulations on chemical substances, another of many
international standards that stifles China's manufacturing-heavy
foreign trade.
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The European Parliament passed on Wednesday a new regulation on
the import of chemical substances to the EU. The new system, called
"Registration, Evaluation and Authorization of Chemicals" (REACH),
is to be enforced from June 2007. It will require the registration
of some 30,000 chemical substances in use today.
REACH comes after the EU's WEEE (Waste Electrical and Electronic
Equipment) and RoHS (Restriction of the Use of Certain Hazardous
Substances in Electrical and Electronic Equipment) directives, both
of which have posed challenges to industries in China.
The EU is the largest importer of China's chemical substances
and relevant products. The country now has 30,000 enterprises
directly related to the chemical industry, said Zhang Shaoyan, a
director from the Shangdong Entry-Exit Inspection and Quarantine
Bureau.
The new rule, though targeted at chemical substances, will
influence about 5 million types of products ranging from textiles,
cosmetics, electromechanical products, and other related
products.
Statistics from the General Administration of Quality
Supervision Inspection and Quarantine (GAQSIQ) show that China's
exports to the European market may fall 3.7 billion euros (US$4.8
billion) if the chemical substances and relevant products from
China fail to meet the new requirements.
The price of exported products will increase as a result of the
cost of registration and evaluation, and reduce the competitiveness
of Chinese products in overseas markets. China now imports
high-tech and high value-added products from the EU. REACH will
also raise the average price of these imported products, according
to the GAQSIQ.
Government bodies have been reminding enterprises to pay
attention to the new rules and be prepared to try and reduce losses
that may result.
REACH may influence China's products in other markets besides
the EU. The new regulation may become a reference for other
countries in setting standards, said Wang Zimin, a senior engineer
from China Petroleum and Chemical Industry Association. The US and
Japan may learn from the regulation and adopt similar measures in
the future, he said.
"It is by far the most authorized regulation on chemical
substances, and also the most complete one," said Wang, referring
to the 70-page directory accompanying the ruling.
Wang suggests the Chinese government work on a new chemical
substance regulation as early as possible. Currently there is no
national regulation system on chemical substances, and over 10
departments overlap in setting various standards.
Wang Xin, a director from GAQSIQ, said enterprises are not yet
fully aware of the new regulations. "Many enterprises don't know
what the REACH is at all, and some know very little about it," he
said.
(China Daily December 16, 2006)
