China lobbies for “market economy status” growth

Officials in Beijing are trying to gain “market economy status”, despite Europe and US opposition

The impact of Chinese imports on US and European jobs has triggered the intention of blocking automatic MES for Beijing expected this year in December.

On the other hand, the US and Europe aim preventing this from happening and contests the decision at the WTO, due to unfair competition leading to protests.

Securing MES translates into trade regulators comparing Chinese exports prices to the domestic markets. This consequence limits imposing tariffs, therefore it attracted a multitude of negative comments.

“China is firmly against any misinterpretation or delay in performance of the clause. We call on members, such as the US and EU, to take necessary measures as soon as possible in order to ensure ending the use of ‘third countries’ before the due time,” China’s Ministry of Commerce commented in response.

Moreover, Mei Xinyu, Ministry of Commerce affiliate continued: “If the EU doesn’t want to honour the WTO protocol it has signed, it should consider withdrawing its membership. The clause in the protocol is very clear and it’s unconditional.”

While international politicians are against the decision, trade negotiators from Europe are more flexible. However, parts of the agreement are evasive, leaving trade lawyers the possibility to argue on each state’s decision to consider China a market economy starting 2017.