Unsatisfied demand fuels ‘smuggling’

Source:Global Times Published: 2013-5-19 22:13:01

Li Xiaohang, a former airline hostess currently serving an 11-year jail sentence for duty evasion, was brought back to the public's attention recently when local media reported that the court would reevaluate her case.

Li, as many will remember, was found guilty of dodging Chinese customs laws when she reportedly failed to pay 1.13 million yuan ($183,851) in import duties on goods she purchased overseas for resale in China.

Actually, China's online retail market was filled until very recently with "smugglers" like Li, who were only responding to the local market's demand for imported goods amid concerns about the quality and safety of domestically made items.

If the government really wants to stop people from bringing overseas goods into the country for sale online or elsewhere, it needs to push manufacturers to step up their game. It should also lower import tariffs on daily necessities and consumer staples. Only by attacking underlining demand can officials put purchasing agents out of business.

The author is Xing Yun, a media personality.

Source: caixin.com


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