China market economy status: what will the EU do?
China's transition to market economy status (MES) and the cooperation with the Parliament regarding the issue is of concern for the International Trade Committee's MEPs, who will address this question to the EU Commission in the February plenary session, in a format of an "oral question", adopted by Trade MEPs this Monday in Strasbourg.
MEPs want to know how the Commission intends to address the issue of market economy status of China and "what options are under consideration". They ask if the Commission will be able to deliver a comprehensive impact assessment of the effects of the different options on EU industry, jobs, users, investments and competitiveness of the EU.
They call on the Commission, when addressing the issue, to act in line with EU's commitments under international law, and cooperate closely with the Parliament.
China is one of the most important trade partners of the EU, yet currently it is not a market economy, and it's protocol of accession to the WTO entails that other WTO members can apply the non-market economy methodologies to imports from China (when calculating the customs duties etc).
China is currently fulfilling only one of the five EU criteria that define a market economy.
EU and China have already clashed over antidumping procedures on various products in the recent past. China represents around 80% of all targeted exporting countries in EU antidumping and anti-subsidy investigations.