Turning to other trade issues now. A web-based system has been launched in the key port city of Shanghai to help companies small and large check to see if their goods qualify for tariff exemptions under the world's various free trade agreements. Yang Chengxi explains.

China continues to make strides in promoting free trade. To date, the country has signed 18 free trade agreements involving 64 trading partners, and 13 more FTAs are being negotiated. However, a report suggests that only 77 percent of companies worldwide are fully utilizing trade deals.

YANG CHENGXI SHANGHAI "Experts say a major challenge for export companies is to actually check to see if their goods qualify for tariff exemptions under free trade agreements. Usually they need to hire law firms to find out, but that proves too costly for smaller companies."

A new web-based system was launched in Shanghai on Thursday called SmartFTAX, which aims at solving this exact problem.

LI LI, CHIEF EXPERT ASIA-PACIFIC MODEL E-PORT NETWORK OPERATION CENTER "They can check whether or not their products qualify for a zero tariff rate and how to utilize it. SmartFTAX can provide solutions, tell them how to qualify for certain benefits or welfare, and how to properly file certain documents."

Companies can use the system for free. SmartFTAX is one of the key undertakings in trade facilitation laid out by the Shanghai municipal government in 2018. The system was developed by the Asia-Pacific Model E-Port Network, a group under the inter-governmental group APEC.

LI LI, CHIEF EXPERT ASIA-PACIFIC MODEL E-PORT NETWORK OPERATION CENTER "It has received praise and strong recognition from all of our member ports and member economies."

According to WTO International Trade Statistics, 85% of global trade happens outside the US, and over half of Asia's total exports are currently sold within Asia. US banking group Citi has said they have witnessed the growth of trade corridors in Asia, especially between China, Japan, South Korea and the ASEAN nations.


LI LI, CHIEF EXPERT ASIA-PACIFIC MODEL E-PORT NETWORK OPERATION CENTER "We know that under the backdrop of the China-US trade war, those companies will likely add tariff rates. So it will be a burden for them. Through this system, it will help companies, especially small and medium ones to find whether they have other sources or other providers from other countries that can give them products which qualify for the zero tariff rate."

An international version of the system is under development and should be finished by September. The developers say they plan to promote the system in more countries and economies at the November China International Import Expo. Yang Chengxi, CGTN, SHANGHAI.