Malaysia to benefit as China scraps import licenses on plastic products

10-Apr-07

Malaysia is among the world's top exporters of plastic materials and China is a growing market with booming demand due to a large manufacturing base. Malaysia's plastics exports to China have received an impetus authorities have scrapped import licenses on more than 300 types of products entering the mainland effective April 1. The range of products includes polyethylene, machinery and electronic parts. The abolition of the import licence is among several measures taken by the government to encourage imports and restructure China's export profile. This move will encourage imports and reduce the country's huge trade surplus. China's rising trade surplus reached US$177.5 billion last year and this is causing friction with its major trade partners, in particular the U.S. In the first two months of this year, the surplus tripled to US$39.64 billion from the same period last year.