IndianMascot
Core Member
China spent four years fighting for market-economy status, a designation that would give it stronger footing with commercial partners while also curtailing their ability to retaliate over trade disputes.
This week, China quietly lost that battle.
The Chinese government allowed a landmark World Trade Organization dispute -- aimed at forcing the European Union to recognize it as a market economy in trade investigations -- to lapse on June 15. The case was initially brought in 2016 and China lost an interim ruling on the matter last year.
By ending the dispute China now provides the EU with greater legal certainty to combat low-price Chinese exports with artificially high tariffs.
The resolution is a major set-back for China as the EU steps up efforts to limit its expansionist practices into the continent. 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.
Bloomberg
