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Comrades, today's lesson is from the Book of Genesis

Reading Time:3 minutes
Why you can trust SCMP
Jake Van Der Kamp

The Ministry of Commerce said it would expand the list of goods subject to export limits to stem a flood of toys, clothing and other low-value products that were contributing to rising pollution and a surging trade surplus.

Beijing is trying to reduce output of low-value goods to cut pollution, encourage more high-value production and ease friction with trade partners over the surplus.

SCMP, July 26

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Let's clear up some misunderstandings here first. I can't speak for toys as the mainland does not have a trade classification for 'toys' but the leading element of the flood of exports cannot be the rag trade. Clothing accounts for less than 10 per cent of mainland exports. That figure was more than 20 per cent little more than a decade ago.

And I wouldn't call clothing a low-value product. Low value in these matters is purely a matter of value added. If you export spaceships but all you really do is import them and paint them before exporting them, then spaceships are a low-value product to you.

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Clothing is actually more of a high-value mainland product. There is skilled work in being a seamstress, which can't be automated, and a fair amount of value added in this trade.

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