China Says It Received 'Positive' Feedback After Increasing Export Inspections

China has received “positive” feedback after increasing inspections of certain medical exports, a Commerce Ministry official said, despite reports of lengthy customs delays due to the measures. The measures, announced earlier this month, increased inspections of 11 medical goods after China received international criticism about the quality of the goods. “Since the implementation of the relevant measures, the effect has been obvious and the international community has made positive comments,” a ministry official said during an April 16 press conference, according to an unofficial translation of a transcript. “I would like to emphasize again that China does not and will not restrict the export of anti-epidemic materials.”

Companies operating in China have faced exporting delays due to the inspections, which have led to a backlog of shipments (see 2004150034 and 2004130014). The restrictions have stranded U.S.-bound face masks, test kits and other medical equipment as “large quantities” of medical goods are sitting in Chinese warehouses and unable to receive official clearances, according to an April 16 report in The Wall Street Journal.

China said its customs authorities have “taken active measures to speed up customs clearance” but are still focusing on inspections to catch counterfeit goods and export violations. “We hope that the relevant national governments and buyers choose products that have been certified by Chinese regulatory authorities and qualified enterprises, and fully communicate with Chinese companies in terms of product standards,” the ministry official said.

The official also dismissed a suggestion that the COVID-19 pandemic will cause foreign companies to close operations in China or move elsewhere due to the economic slowdown. “China has not and will not have a large-scale withdrawal of foreign capital. Foreign investors continue to be optimistic about China,” the official said, “and their confidence and determination for long-term business development in China have not changed.” The official said U.S. companies in China are “facing some problems,” but “in the long run, China will remain the key market for most U.S.-funded companies.”

The official also said the ministry has taken note of a global effort to increase foreign direct investment screening, warning foreign countries that the measures should not discriminate against Chinese companies. The U.S.’s Foreign Investment Risk Review Modernization Act, implemented earlier this year, authorizes the U.S. to review more foreign investment transactions, and U.S. officials have urged other countries to more heavily scrutinize foreign investment (see 2002260042). “The Chinese government will continue to support Chinese companies to conduct foreign investment,” the ministry official said.

During the press conference, China also announced the creation of 12 “national digital service export bases,” which it said will help it more quickly develop digital trade and technology, and establish “new trade formats.” The zones, which a Chinese ministry official called “digital service export parks,” will help China promote its digital service industry to other countries. The creation of the export bases stemmed from the “widespread application of digital technology” caused by the COVID-19 pandemic response measures, which have forced businesses to increase online work, the ministry said.