Article

China has held off enforcing a controversial new rule that would force manufacturers of cheaper goods to pay cash deposits on imports of essential raw materials. The delay may provide time for investors to lobby decision-makers in Beijing to persuade them to accept letters of credit in lieu of cash deposits under new trading laws meant to make the manufacture of cheap goods in China more difficult. The postponement gives tens of thousands of Chinese manufacturers a reprieve. Hong Kong investors were particularly vocal in their calls for China to accept L/Cs in lieu of cash deposits under Beijing's new trade policy. The delay follows intense lobbying by major industry bodies and means that, for the time being at least, manufacturers are spared having to pay cash deposits for importing 1,853 types of raw materials restricted under the rule.