EU denies China prized status

The European Union has refused to grant China the coveted Market Economy Status (MES) following a request submitted by Beijing last June, the bloc's executive commission has said.

    Few Chinese exports are subject to anti-dumping measures

    "Remaining shortcomings in four broad areas, which affect the conduct of anti-dumping investigations, mean that it is not possible to grant MES at this stage," the statement said.

    The commission said the finding only concerned trade defence investigations, covering anti-dumping and anti-subsidy cases.

    In 2003 only 0.5% of Chinese exports of goods to the EU were subject to anti-dumping measures.

    "MES does not have an impact on the number of anti-dumping/anti-subsidised cases; it is simply a method to calculate AD (anti-dumping) duties," the Commission said.

    China had asked the Commission for MES last June and provided follow-up information in September and again this year, and the Commission had agreed to give a preliminary assessment by the end of June.

    The four conditions which must be met before the bloc will grant MES are:

    • State influence - ensuring equal treatment of all companies by reducing state interference, either on an ad hoc basis or as a result of industrial policies, as well as through export and pricing restrictions on raw materials.

    • Corporate governance - increasing compliance with the existing Accounting Law to ensure the usability of accounting information for trade defence investigations.

    • Property and bankruptcy law - ensuring equal treatment of all companies in bankruptcy procedures and in respect of property and intellectual property rights.

    • Financial sector - bringing the banking sector under market rules.

    "This preliminary assessment is not an overall judgment on the state of development of the Chinese economy, but a technical analysis linked exclusively to the determination of companies' costs and prices in trade defence investigations," the Commission said. 

    SOURCE: Reuters


    YOU MIGHT ALSO LIKE

    From the US to Afghanistan: Rediscovering the mother who left me

    From the US to Afghanistan: Rediscovering the mother who left me

    Tracee Herbaugh's mother, Sharon, abandoned her when she was born, pursuing a career from which she never returned.

    Could mega-dams kill the mighty River Nile?

    Could mega-dams kill the mighty River Nile?

    For Ethiopia, a new dam holds the promise of much-needed electricity; for Egypt, the fear of a devastating water crisis.

    The evening death came for me: My journey with PTSD

    The evening death came for me: My journey with PTSD

    On a gorgeous Florida evening, a truck crashed into me. As I lay in intensive care, I learned who had been driving it.