China to lose GSP in 32 countries from Dec

After 43 years China will miss out on duty benefits in 32 countries, including 27 European Union nations starting from December 1.

China is not unhappy over the issue as it said the decision indicates that it is becoming a mature economy and its local industries do not need protection.

However, some analysts said China’s labour-intensive and low-margin businesses will suffer, and that might foster relocation of manufacturing units from China to other countries.

According to a statement issued by the General Administration of Customs of China (GACC), 32 countries - 27 European Union nations plus the United Kingdom, Canada, Turkey, Ukraine and Liechtenstein - will no longer offer China the generalised system of preferences (GSP) that allows a country export duty-free.

In the statement, the GACC said the move is a recognition from the advanced economies that China does not belong to the bracket of low-income and lower-middle-income countries anymore.

“Chinese products are competitive enough in the market that they need no protections,” said the statement.

The GSP was first given to China in 1978, and around 40 countries have granted or are still offering it duty-free market access on certain exports.