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China loses WTO dispute against EU in 'market status' bid

BEIJING failed to win its battle to have the European Union recognise China as a 'market economy' as defined by the World Trade Organisation, reports Bloomberg

17 June 2020 - 19:06

BEIJING failed to win its battle to have the European Union recognise China as a 'market economy' as defined by the World Trade Organisation, reports Bloomberg.

The case was initially brought in 2016 and China lost an interim ruling on the matter last year. By not pursuing the matter China has provided the EU with greater legal certainty in combating cheap Chinese imports with high tariffs.



On the same day that China allowed the dispute to lapse, the EU announced an unprecedented attempt to block Beijing's subsidies to exporters. The 27-nation bloc will also unveil a proposal this week to protect European companies from Chinese takeovers.



The EU, Chinese and U.S. missions to the WTO didn't immediately respond to requests for comment.



The move also bodes well for the US, which is engaged in a nearly identical Chinese dispute that US Trade Representative Robert Lighthizer previously called the WTO's 'most serious litigation'.



China decided to drop the matter after the WTO, in an interim ruling, rejected the argument that Beijing's 2001 agreement to join the WTO automatically granted it the right to be treated as market economy in anti-dumping investigations after 15 years.



The ruling, which still not been made public, said the EU could continue to impose higher duties on 'dumped' Chinese imports on a case-by-case basis, according to sources familiar with the case.



The US and EU don't consider Chinese prices reliable, and for decades they have calculated Chinese anti-dumping duties in ways that disregard Chinese costs and prices in favour of data from third countries that adhere to free-market forces.


SeaNews Turkey

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