China bans cell-phone imports from S. Korea over garlic

Asian Economic News, June 12, 2000

BEIJING, June 8 Kyodo

China has temporarily suspended imports from South Korea of cellular phones and polyethylene in a retaliatory action against Seoul's sharp rise in tariffs on garlic, Chinese newspapers reported Thursday.

China took the action Wednesday after South Korea raised the tariff on imported garlic to as high as 315%, effective last Thursday.

It was the first trade friction between the two countries since their 1992 establishment of diplomatic relations.

China is a major garlic exporter to South Korea and Seoul's action is targeted at China, said Hu Chusheng, spokesman of the Ministry of Foreign Trade and Economic Cooperation.

Any damage to South Korea's garlic industry is caused entirely by the sharp increases of its garlic production at home, instead of the minor increase of its garlic imports, Hu said.

Hu said South Korea's limitation step on Chinese garlic is a discriminatory trade protection measure.

On Thursday, Chinese Foreign Ministry spokeswoman Zhang Qiyue said Beijing wants the issue to be resolved through dialogue and negotiations.

The value of imports under Beijing's embargo totals about $500 million, according to Chinese statistics for 1999, far surpassing the $9 million China earned from garlic exports.

China had a $9.5 billion trade deficit with South Korea in 1999, the largest among China's trade partners.