There Is A "Murmur" Within The EU That Does Not Give China The Market Economy Status.

In March 21st, China asked the World Trade Organization (WTO) to set up an expert group to examine whether the EU's "substitute country" practice of anti-dumping duties against China violated international trade rules, and the EU expressed its opposition to this request.

According to the India daily express, 21, the representative of China said in WTO that China requested DSB (WTO dispute settlement entity) to take action to ensure that the EU rectified its practice of inconsistent with WTO principles.

China joined in 2001

The fifteenth article of the protocol of accession to the WTO stipulates: "when launching anti-dumping investigations against products from China, it does not automatically compare the price of domestic products with the price of Chinese products, but choose the price of a third country product, that is, the price of the substitute country". But at the same time, it is clear that the 15 years after China's accession to the WTO will be terminated in December 11, 2016.

But by the end of last year, the EU still chose to maintain this rule, refusing to give China the "market economy status" and still apply the "alternative country" practice when it imposed anti-dumping duties on China.

Last December 12th, China and the United States and the European Union came to China.

The practice of "substitute country" has raised the request for consultation under the WTO dispute settlement mechanism and formally launched the WTO dispute settlement procedure.

At that time, the Ministry of Commerce of China said that with the advent of the 15 year period, other WTO members should immediately stop using the "alternative country" approach in anti-dumping investigations against China, but regrettably, the United States and the European Union have not fulfilled their obligations so far.

Therefore, China reserves the right under the WTO rules and resolutely safeguard its legitimate rights and interests.

As China and the EU failed to reach a consensus, China called for an expert group to set up an expert group to investigate the WTO.

The European Union representative also said in a statement on Tuesday that it is currently debating whether it wants to change its classification of "non market economy status" and regrets China's request for the establishment of an expert group.

"We think this is a waste of WTO's tight resources," the representative said. "We can only conclude that China's goal is actually to interfere in the EU's internal legislative process".

From nearly 30 families

The alliance AEGIS Europe also came out at the first time against China's legitimate demands.

AEGIS spokesman even claimed that "China's request is like Lance Armstrong suing the tour de France for the restoration of his medal."

Owing to opposition from the European Union, the proposal to set up an expert group has not been approved.

However, WTO said China may ask DSB to review again next month.

The WTO may agree to conduct an investigation at the dispute settlement conference in April 19th, because according to WTO rules, if China requests second dispute settlement requests, it will be automatically passed, and then the EU can no longer obstruct the establishment of the investigation team.

WTO's independent investigation team usually spends several months to investigate. If the conclusion supports the plaintiff, it will authorize the plaintiff to take retaliatory trade measures.

Just yesterday, Merlin, President of the international trade and Sustainable Development Center (ICTSD), said that China is now a market economy country recognized by all Member States of WTO, which is hard to refute.

If any country uses the "substitute country", it violates the WTO rules unless the country proves that there are problems in the pricing mechanism in this field.

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