Xinhua recently reported that the European Parliament passed a non-binding resolution rejecting China’s bid for market economy status. The resolution mentioned that some EU companies and labor unions expressed deep concern about the threat of potential unemployment and even some EU companies’ survival after granting China such status. The resolution emphasized that China has to first meet the five major EU standards for a market economy before this status can be granted. Current rules for anti-dumping and countervailing investigation procedures remain. However, China is now the second largest trade partner of the European Union. The Parliament said it cannot violate the WTO (World Trade Organization) regulations and that the European Commission should work with other trade partners to come up with a unified interpretation of the term “Market Economy.” The Chinese Ministry of Foreign Affairs responded by insisting that its accession agreement to the WTO provides for automatic Market Economy Status after 15 years and that the EU should not continue treating China unfairly.
Source: Xinhua, May 13, 2016