China is going to have to fight to defend its new status as a “market economy” as its main partners, fearing a flood of products being sold at a loss, refused to recognize him, despite the expiration Sunday of a clause in the accession treaty of Beijing at the WTO. On the 11th of December marks the fifteenth anniversary of the accession of China to the world trade Organization, in a context marked by the distrust of chinese exports, particularly in the United States, where the president-elect Donald Trump’s threat to impose tariffs of 45%.
under The terms of its protocol of accession, the member countries of the WTO could up to this date treat Beijing as a “non-market economy”, with the practical consequence to be able to impose heavy anti-dumping taxes, on the grounds that prices in China do not reflect the reality of the market. But neither the United States nor the european Union or Japan, had the intention to abolish their arsenal of anti-dumping. China will therefore have to engage in a lengthy procedure before the WTO if it wants to condemn its partners, explained specialists of the international trade. In the meantime, no avalanche of chinese products sold at a loss does not profile as of December 12, they argue.
“China will take measures to defend its rights if the members (of the WTO) are pursuing the old practice of anti-dumping investigations against chinese products after the expiration date” of the clause, warned Friday the spokesman of the chinese ministry of Commerce, Shen Danyang, as quoted by the new China news agency in reaction to the announcement, the day before, by Japan maintaining its commercial arsenal.
“disguised Protectionism”
In a comment to the vitriol, the official news agency said that “China will automatically enter the status of market economy” on 11 December. The refusal of other powers to recognize this status “is nothing other than disguised protectionism, which goes against the current of globalization, and poisons the recovery of the global economy”, accuse-t-it, denouncing a “two-weights, two-measures applied by the West to China”.
But for Washington, the granting of market economy status is not automatic and the other clauses of the anti-dumping of the protocol of China’s accession to the WTO “remain intact”. “The United States remains concerned about the serious imbalances of the regimentation the chinese, such as excess production capacity, in particular in the sectors of steel and aluminium”, hammered the department of Trade Friday in a press release. “China has not made the reforms necessary to function in accordance with the rules of the market”.
Washington will therefore continue to apply its methods of calculation of “alternatives” to determine margins of dumping for chinese, has promised the ministry, supported by the Alliance of u.s. manufacturing (AAM), according to which the trade surplus of China has cost 3.2 million jobs in the United States since the accession of Beijing at the WTO.
thousands of procedures anti-dumping
“It is not by chance if the misfortune of the economy has played a great role during the recent elections: for the past 15 years, workers such as entrepreneurs ask China to abide by the rules and this is 15 years that Beijing does nothing,” says Scott Paul, the president of the MPCA, in a press release that says more than a thousand of anti-dumping proceedings have referred to China in the world since 1995.
a bit different Approach to Brussels, where the european Commission announced last month a new methodology to fight against the dumping, which will target more specifically China but could apply to any country suspected of selling at a loss. “This avoids any possible retaliatory measures from China, since everybody will be treated in the same way”, explains to the AFP mep Franck Proust. But the Twenty-eight are divided, and the proposal, denounced by Beijing, could not be approved before the December 11 deadline by the member States of the EU or by the european parliament.
“We lost a lot of time. To this date, we knew it since 2001 and unfortunately, the proposal will not be operational at best, to the summer of 2017,” said Mr Proust. So much time left in Beijing, to seize the dispute settlement body of the WTO. But as the policeman of the global trade will not render a final verdict on the interpretation of the famous clause, “the EU and other WTO members may continue to treat China as non-market economy that it is,” said in a press release Milan Nitzschke, a spokesman for Aegis Europe, an organization that brings together some thirty european industries.
(With AFP)
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