China: market economy status; impact on employment and industry

19.5.2016

Question for written answer P-004079-16
to the Commission
Rule 130
Philippe Lamberts (Verts/ALE)

Under the rules of the World Trade Organisation, the EU must give its opinion on the granting of market economy status to China by 11 December 2016. The decision will affect the use of trade defence instruments and the development of a number of economic sectors.

According to a study by the Economic Policy Institute, Chinese imports to Europe, which have increased five-fold over the past 15 years, would arrive at an even faster rate, resulting in the loss of up to two million jobs, with a further 1.5 million disappearing due to the reduction in purchase power.

If the EU were to grant this status to China (albeit subject to certain conditions), what measures would it take to protect workers, given the limitations of safeguard measures?

Does the Commission plan to further increase the European Globalisation Adjustment Fund or to reactivate the industrial policy?

Has the Commission carried out any impact assessments on employment, the various sectors involved or SMEs?

Could it (via ESPON?) demonstrate the impact at NUTS 2 level, as was done in the case of the US by the researchers David H. Autor, David Dorn and Gordon H. Hanson[1]?

• [1]  February 2016, http://www.ddorn.net/papers/Autor-Dorn-Hanson-ChinaShock.pdf