By Li Hongmei

Foreign-funded institutes will now be allowed to conduct quality testing and monitoring of consumer goods in government-entrusted programs inside Shanghai's pilot free trade zone, the city's quality watchdog announced yesterday.

At present, only Chinese institutes carry out tests and supervision of product quality in government-authorized projects, according to Shen Weimin, deputy director of the Shanghai Quality and Technical Supervision Bureau. But certain areas like food testing, safety inspection of motor vehicles and expert testimony will remain out of bounds for them.

Foreign-funded companies that meet the desired qualifications and capability are welcome to apply, Shen said.

"Many foreign-funded institutes have shown interest and are paying attention to the change in policies," Shen said.

A sub-bureau of the watchdog was set up at the zone on Wednesday. A trial of a remote monitoring system and comprehensive liability insurance on elevators will be conducted.

Meanwhile, the bureau named 13 batches of knitwear and knitted underwear produced or sold in the city as substandard, including a batch of knitted men's underwear made by Shanghai Baromon which was found faulty for its fiber content.