| Abstract | The central government of China is convinced that the lack of proper control over the processing trade is a major cause of smuggling and tax evasion. Thus, in addition to extending "national treatment" to foreign-invested enterprises, recently the Chinese government has also tightened control over the export processing trade. Some of the major measures adopted are featured in this article. They include the trial implementation of the duty-security system for the export processing trade, strengthing supervision over cross customs district transfer of processing materials, tightening measures over the paper packaging and raw materials processing trade, tightening control over the plastic waste processing trade, and cancellation of investment concessions in some processing activities. The impact of the new measures is also examined. |
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