Europe debates whether to give China market economy status

The problem of non-market economy status of mainland China stems from the 'WTO Accession Protocol' signed when it joined the World Trade Organization (WTO). At that time, Article 15 of the WTO Accession Protocol stipulated: 'When an anti-dumping investigation is initiated against products from China, the domestic price of Chinese products is not automatically used as the comparison price, but the price of the third country's products, that is, the price of the surrogate country, is selected as the comparison price. , this treatment will be maintained for 15 years.” According to the additional terms of accession to the WTO, the member states of the organization must recognize China’s “market economy status” by December 2016. Recognition of China's market economy status means that the EU will use the domestic prices of Chinese products as the basis for trade investigations. Currently, the EU uses data from other countries on the grounds that the Chinese government's intervention has artificially lowered the price data of its domestic products. As a result, the data does not reflect the 'normal value' of the product, a move that allowed the EU to impose higher tariffs on China and limit competition from Chinese exports to the 28 EU countries. Currently, Europe imposes anti-dumping duties on many products imported from China. The amount of tax amounts to billions of euros is much higher than that of other countries. Products subject to anti-dumping duties include stainless steel, solar panels, aluminum foil, bicycles, screws, paper, kitchen utensils etc. Whether or not to recognize China's 'market economy status' has become the most concerned issue on the EU's agenda. At present, European countries have different interests and a clear attitude towards this issue. The EU will hold initial discussions on whether to recognize China's 'market economy status' on January 13 this year, heralding the start of a war of words in Europe. According to a previous report by the Financial Times, the European Commission will propose a proposal to grant China 'market economy status' as early as February next year, after which the 28 EU member states and the European Parliament will decide whether to pass the proposal. On this issue, there has been division within the EU and no agreement can be reached. Currently, Italy, Spain and France tend to take a tough stance on China. The Netherlands, Belgium and the UK 'firmly' support China's market economy treatment. Jo Leinen, head of the European Parliament's delegation on relations with China, one of the three major EU institutions, said that this is the hottest issue on the EU's agenda and a hot potato. China is trying to be recognized for its market economy status, and European countries have divided their own interests on this issue. European industrial manufacturers are very cautious on this issue. More than 25 European industrial unions, including those representing steel manufacturing groups, have defended their insistence on China's 'non-market economy statusThousands of jobs are at risk. Steel and porcelain makers are on high alert about whether China can win 'market economy statusEU trade chief Cecilia Malmstroem previously said that it would be open to recognizing China's market economy status, but at the same time needed to assess the impact on European industry. 'The European Commission is conducting internal assessments and independent research on this issue, and is analysing the economic impact, especially on employment.' Jacques Bourgeois, senior legal counsel at Sidley International, believes that Europe will address this issue. An agreement is more likely, and the burden of proof will be in China's favor, as China's trading partners will have to prove that domestic prices given by China do not reflect market prices. He said, 'I think the EU will have to recognize China's market economy status in anti-dumping tariffs because it is a sensitive political issue in Europe. But in some anti-dumping cases, if the EU can prove that Chinese exporters do not meet certain conditions, The organization will also maintain the right to appeal against China's non-market economy status.' The United States had previously sent a signal to the EU whether to recognize China's 'market economy status'. At the end of last year, media reported that U.S. officials warned EU countries that granting China “market economy status” would prevent European and American countries from taking measures to prevent China from dumping cheap goods to them, which would be tantamount to “unilaterally dismantling” Europe’s trade defense against China. Privately, the move has been harshly criticized by U.S. officials, who see the recognition of China’s “market economy status” as the latest example of Europeans trying to curry favor with Beijing in order to secure huge investments. Now European countries are trying to get infrastructure investment and commodity orders from China. According to statistics from the Ministry of Commerce of China, so far, 81 countries including Russia, Brazil, New Zealand, Switzerland and Australia have recognized China's market economy status, but many countries, including the United States, the European Union, Japan and Canada And regional economic organizations have not yet recognized my country's market economy status.