In a major blow to China's exports, the European Union has announced that it is cancelling some of the advantages enjoyed by Chinese commodities under the generalised system of preferences (GSP) so that other developing countries can also benefit.

The visiting EU Trade Commissioner Pascal Lamy, who met with Chinese Premier Wen Jiabao and other officials, announced this in Beijing on Friday.

Chinese products have already enjoyed market access to the European Union market under the system and are no longer sensitive to changes in tariff rates, Lamy told reporters at a press briefing after he gave a speech to the EU Chamber of Commerce in Beijing.

The EU has announced it will raise tariffs on Chinese commodities from the current 3.5 per cent to 5 per cent in October and plans to exclude Chinese commodities completely from the GSP in the first half of next year.

He denied that the move was in response to the pressure of the appreciating Euro currency on the EU trade deficit with China.

The cancellation will affect almost all Chinese exports to the EU, including household electronic appliances, clocks, watches, optical equipment, musical instruments, clothes and other consumer goods.

The generalised system of preferences is a scheme under which developed countries grant reduced tariffs to finished and half-finished industrial products from developing countries.

China had a trade surplus of $9.7 billion with the EU last year.