In the bag

China is endeavoring to compile its first "dictionary" for suitcase and bag export companies, Wang Zhongqi, vice-president of China Chamber of Commerce for Imports and Exports of Light Industrial Products and Arts-Crafts (CCCLA), says.

At an expert and entrepreneur panel workshop organized recently by the CCCLA in Shanghai, discussion was centered on formulating the country's first technical guide booklet for suitcase and bag export companies. This was seen as a preemptive move by the government and the industry to enhance the quality of exported goods.

"A technical guide can help export companies and is conducive to the industry's development in the long run," says Wang, adding the long-term aim was to build a better "made in China" image.

The booklet would cover the quality and safety standard differences between domestic and overseas markets; important technical regulations; testing procedures and industry standards of main target markets, and how to deal with the technical barriers in global trade.

As the world's largest suitcase and bag manufacturer, China exported $10.81 billion of products globally in 2007, up 24.21 percent year on year, says Huang Daqi, secretary general of China Chamber of Commerce for Imports and Exports of Suitcases and Bags.

The country's exported suitcases and bags accounted for more than 33 percent of the global market. The United States and the European Union were the major customers, she adds.

Suitcase and bag exports to the United States in 2007 stood at $2.85 billion, while the European Union topped $2.83 billion.

Customs figures show the country imported $354 million of suitcases and bags in 2007, up 50.71 percent year on year.

Huang says the import growth rate of suitcases and bags had exceeded the export rate, so a national standard applicable for both exported and imported goods would better protect Chinese consumers' interest.

"The toy recall incident last year tarnished the image of 'made in China' products, so it is crucial for us to take preventive measures on the quality control on Chinese suitcase and bag exports," says Shi Lili, an official of Ministry of Commerce Department of Foreign Trade.

Yang Wanshan, a General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) official, says although suitcases and bags were not subject to legal inspection domestically, it was better to take precautions rather than receive complaints from overseas customers first.

Pierre Beaupoil, general manager of the Shanghai branch for the French CTC company, a research and testing service provider, says if Chinese export companies could grasp the relevant regulations of the European Union on quality and safety standards, it would be easier for them to deal with technical barriers.

Shi Jihong, chairman of the Pinghu-based Newcomer Industries Co, in eastern Zhejiang province, adds: "In the past, because there was no national industry technical guidance, we had to yield to different safety and quality requirements put forward by various customers."

He says domestic manufacturers would raise prices if the customer requirements were high. Domestic exporters might also lose purchase orders, adding that with national technical guidance, export companies would have more negotiating power.

The CCCLA has also accepted an application from the Pinghu city government to establish the Chinese suitcase and bag industry base in the coastal city.

Pinghu Mayor Sheng Quansheng has called on local suitcase and bag exporters to shift their focus from getting market shares by lowering prices to building better brands and improving the industry's standards.

James Wang, general manager of the Shanghai-based Newest Luggage Co, Ltd, a leading domestic suitcase and bag exporter, says his company is already ahead of the standards. It invested more than 1 million yuan last year to update its computer-based research and development and its automated production lines.

"Our company also provided education and training to our material suppliers to better control our product quality," Wang says. "This is because most of our products are sold on the European market and have stringent quality and safety requirements."

Xinhua

(China Daily 03/24/2008 page9)