Brussels impressed by China 'market economy' progress
05 Jun '07
3 min read
Gaining market economy status – sought by the world's new manufacturing superpower since 2003 - would make it easier for Chinese exporters to fight off European anti-dumping cases.
EU trade commissioner Peter Mandelson and Chinese trade minister Bo Xilai are set to meet next week on 12 June to discuss, among other things, China's trade progress.
Opposition to Brussels' trade policy: Meanwhile, some of Europe's most powerful industrial associations have complained to the EU executive over its soft line towards China, claiming European companies are being exposed to cut-price dumping by foreign rivals because of a secret change in trade policy in Brussels.
In a letter sent last week to commission president Jose Manuel Barroso - with Mr Mandelson in copy - the organisations claim that Brussels has secretly lowered Europe's defences against unfair subsidies by other countries and has shown "unequivocal political bias" against anti-dumping measures, the Financial Times reported on Monday (4 June).
The ten associations which signed the letter represent European industries most exposed to global competition, including textiles, chemicals, metals, mining and fertilisers.
Brussels started 36 anti-dumping measures last year - including famous cases involving Chinese shoes, plastic bags and bicycle parts - but there have been no similar moves so far this year .
The EU is divided between the interests of generally pro-free trade northern EU states - which have already outsourced production to emerging economies such as China and India - and southern EU countries fighting to keep their national industries alive.
"The commission operates a trade defence policy with great rigour and which is firmly anchored in the framework of the existing rules," a commission spokeswoman told journalists in Brussels on Monday, without wanting to comment on the letter directly.
The commission is currently seeking to give a sensitive face-lift to EU's trade protection rules arguing that the global economy has changed since the set of rules was last looked at in 1996.
The trade defence instruments are anti-dumping, anti-subsidy and safeguard measures, and all aimed at defending European producers against unfair competition and dramatic shifts in trade flows.
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