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The European Union has delayed implementing safety rules on cheap cigarette lighters that threatened Chinese products, China's Ministry of Commerce informed domestic exporters on Wednesday.
The news follows an August announcement that the European Union would drop dumping charges against Chinese exporters of lighters.
The announcement comes as relief to more than 300 domestic lighter manufacturers, which feared the rule would reduce exports to Europe if it went into effect next June as scheduled. The EU market currently accounts for about 33 percent of overseas sales of Chinese lighters.
"It's really good news for us," said Li Zhongjian, chairman of Wenzhou Tungfong Lighter Co Ltd. "After all the talks by the lighter association and with government support, we have persuaded the EU that low prices are no reason to view our lighters as unsafe."
Li's company sells more than 10 million lighters worth more than 60 million yuan (US$7.2 million) in EU markets every year.
EU officials emphasized that the decision is temporary and Chinese lighters must still meet its requirements.
The European Union first passed the rule in May last year, stipulating that lighters priced below 2 euros (US$2.48) before tariffs must be equipped with "safety locks," a device to protect children, before entering the European market.
Industry insiders say the rule was proposed because low-cost lighters from Wenzhou, in eastern China's Zhejiang Province, have long been threatening their counterparts in Europe.
At present, more than 300 Wenzhou firms produce nearly 500 million cigarette lighters a year, 80 percent of which are sold abroad. Wenzhou lighters now account for 70 percent of the global market for metal-coated lighters and 95 percent of the domestic market.
Industry insiders say most Wenzhou lighters shipped to Europe are priced around 0.5 euros while European counterparts sell their products at prices 20 times higher than that.
Chinese lighter makers have been busy developing lighters with the safety device or making the lock heavy to prevent children from opening it.
"There's no technical or cost problem at all," said Zhou Dahu, director of Wenzhou Tiger Cigarette Lighter Factory. "Only the new products are not welcome in our export countries."
Zhou said, the new product is almost the same cost with the previous one, but because of its complexity, customers don't like it.
(Shanghai Daily December 19, 2003)
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