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    Us Warns EU Against China'S "Market Economy Status"

    2016/1/2 14:42:00 38

    The United StatesThe European UnionChinaMarket Economy Status

    The United States warned the European Union not to give China the "MES", claiming that "if China obtains this preferential trade treatment, it may affect the US efforts to prevent Chinese enterprises from dumping cheap goods in the US and European markets".

    The report holds that gaining market economy status in the World Trade Organization (WTO) is one of China's core strategic objectives.

    Its advantages include that it will significantly increase the difficulty for the US or EU to impose high tariffs on Chinese enterprises that are dumping unfair commodities in their markets.

    US officials warned EU counterparts to give

    China

    The market economy status is no different from "unilaterally lifting" the European trade defense against China.

    In private, US officials criticized this behavior, which seems to be the latest example of Europeans trying to curry favor with China in order to get huge investment.

    However, it is noted that the situation is somewhat complicated because the European Commission is increasingly inclined to support China's aspirations.

    The agency expects to make a decision as early as next February.

    German Chancellor Angela Merkel (Angela Merkel) supported China's market economy status, and George Osborne, which urged Britain to cater to China, strongly supported George Osborne.

    However, other European governments headed by Italy, as well as an increasing number of European trade unions and traditional industries (including steel, ceramics and textiles) are strongly opposed.

    Senior trade officials in the United States have expressed their concerns to European counterparts in recent months.

    According to the WTO rules, China's

    Non market economy status

    The United States and the European Union have a much greater degree of freedom in determining the fair production costs of Chinese enterprises when conducting anti-dumping investigations.

    Trade lawyers say one of the consequences is that it is easier for the complainant to prove his complaint against China.

      

    European Union

    The Committee declined to comment on its decision, which is still under consideration.

    However, the diplomatic and business people involved in the process say that the momentum now emerging means that the Commission is likely to make a decision to grant China's market economy status in the first quarter of 2016.

    Tu Xinquan, a trade expert at University of International Business and Economics, said: "the EU's attitude towards China is better than that of the United States. Of course, the European Union's industry will not welcome the status of China's market economy", said Tu Xinquan.

    But I think China is very likely to be granted this status. "


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