EU Green Rule Forces China to Raise Appliance Prices
Jun 16, 2005
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China will have to raise its export prices of electrical appliances starting on August 13 when 25 EU member countries will implement the Waste of Electric and Electronic Equipments (WEEE) directive.

WEEE is one of the two directives on environmental protection issued by EU on Feb. 13, 2004, stipulating that electronic and electrical appliance importers and dealers must take back the waste of their products and pay for the recycling.

Jiang Feng, Secretary General of the China Household Electrical Equipment Association, pointed out that the recycling of refrigerators per unit may cost at most 20 euros (approx. U.S. $24.17); that of washing machines and air-conditioners, 10 euros (approx. $12.08); that of microwave ovens, 5 euros (approx. $6.04) ; and other small electrical appliances, 1 euro (approx. $1.21). The extra expenditure could drive up the production cost by at least 10 percent.

The directives, in fact, are green barriers, said Zhao Weimin of Galanz Group, which exports nearly 40 percent of the products to EU, adding that no country can afford it. Therefore, Chinese producers have to raise the retail prices.

However, WEEE will hardly influence the export volume of Chinese products as it also acts on EU members.

The directives are unlikely to be put into practice in 2 months, as most of the EU members have not made laws based on WEEE, said Mr. Jiang. (XIC)

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