US Commerce Department's 1st Public hearing on China' s market economy status

he US Department of Commerce held a five-hour-long public hearing on China's market economy status for the first time on June 3. The Chinese representative urged that it's time to grant China's market economy status.

In April, the meeting of the 15th Sino-US Joint Commission on Commerce and Trade agreed to set up a working group for China's market economy status and set about to discuss the issue. The hearing marks the first step toward resolving the years-long tough problems that have plagued the Sino-US economic and trade relations.

James Jochum, assistant Secretary of the US State Department of Commerce, who presided over the hearing, said in his opening speech that the urgent task of the working group and objective for the hearing are to determine the problems that need further discussion and analysis. The problems include the structure and operation of the Chinese economy, the government's role in economy, particularly in banking industry and state-owned enterprises, China's labor market and exchange rate mechanism. The major objective of the hearing is to collect information for giving guidance to the working group.

Neither the working group, nor the hearing will reevaluate china's non-market economy status under the US anti-dumping laws. Any decision on "graduation" of China's non-market economy status, whenever made, shall go through formal and quasi-judicial procedures that are consistent with related Articles of the American Tariff Act of 1903 and its amendments. The preliminary procedure includes gathering data and information from third parties including the experts, economic cooperation organization and World Bank, as well as the interest parties and the general public. Similar hearing will not be held in the near future but statements materials from all parties will be accepted.

Analysts believe that Jochum's statement of his attitude implies that China has to go a long and complex way before it wins US recognition of its market economy status.

Dai Yunlou, commercial counselor of the Chinese Embassy to the United States, points out in his speech that now is high time for the United States to grant China the market economy status. This is beneficial to Beijing as well as to Washington. Imposing unfair extra tariff on Chinese products seriously harms US interest. Dai also clarifies the parlance that China's non-economy status is fixed for 15 years in its agreement made when joining the WTO. He thinks using the price of a substitute country at the anti-dumping time is in itself a price-twisting practice that violates rules of the market economy.

Dai says in conclusion that China welcomes the process of appraising China's market economy status. He expressed the hope the process can press ahead and finally lead to identification of China's market economy status.

By People's Daily Online