Lack of regulations push low-quality Chinese goods to India

China today said that lack of regulations in the country (China) is facilitating entry of sub-standard goods into the Indian market.

"Small business (small entrepreneurs) from India frequently travel to China and source cheap goods from small rural manufacturers (there). They then bring such goods to the Indian market. We don't have any regulation to prevent this practice," China's consul-general Mao Sewei told reporters after addressing members of the Bengal National Chamber of Commerce and Industry here yesterday.

Admitting that such Chinese goods imported to India were of very poor quality, he said, "Even people in China do not buy goods of such poor quality. Chinese goods are sold all over the world and enjoy goodwill everywhere."
 
Mao, however, denied that China was resorting to dumping.
 
"Exports, which contributed 40 per cent of China's GDP over the last few years, had seen a steady decline since last October owing to the meltdown. As a result, the economic growth slowed down to 6.8 per cent. Does this mean that we are resorting to dumping?" he said.
 
To a question, he said China did not have enough oil and gas reserves for exports to India. "We are, in fact, negotiating with other countries for import of oil and gas."
 
Quoting the World Bank reports, he said China's economy was likely to bottom up by mid-2009 and will fully recover by 2010.