Thus, the tariff decrease will have little effect on domestic enterprises. Sugar Industry China s 1998-99 sugar output reached 8.862 million tons, slightly exceeding market demand. Once the cheaper sugar enters the domestic market, the domestic sugar price will fall to the same level. To avoid loss, sugar manufacturers will probably decrease the purchase price of raw sugar. Thus, those most hurt by WTO entry will be sugar farmers.
All nations protect their sugar industries.
Such government intervention results in domestic sugar prices higher than the international market price and a relatively stable sugar market. The import quota management system will continue to protect China s sugar industry. MDI MDI is the raw material for polyurethane in the plastics industry. MDI production being small scale and expensive, China s product cannot compete with cheaper foreign products. After China s WTO entry, manufacturers of labor-intensive, light industry products such as bicycles, sewing machines, toys, clocks and watches, furniture, hardware, enamelware, ceramics, canned foods, leather shoes, fur products, drawn work, tungsten and molybdenum products may explore international markets and increase exports.