Embarks on a bumpy way, steadily

US hearing on China's MES

"Today I just want to give you only the following remark: I hope that China's complete market economy status will be recognized as soon as possible." Commerce Minister Bo Xilai said on May 6 in his speech at the China-Europe Investment and Trade Discussion and Symposium.

That same day, while talking with President Romano Prodi of the European Commission, Chinese Premier Wen Jiabao noted that after more than 20 years of reform and opening up efforts, China has basically established a socialist market economic system. He expressed the hope that the EU will pay full attention to this fact and will recognize China's complete market economy status at the earliest date possible.

Since its entry into the WTO in 2001, the Chinese government has been striving to win a complete market economy status to be recognized by various international trading countries. Acquisition of a market economy status will facilitate the development of China's import and export trade. However, many Western countries, including the United State and EU countries, have so far not yet formally recognized China as a market economy country.

Making use of the question concerning a market economy status, some individual countries are prone to carrying out anti-dumping investigation of Chinese export products. Other WTO members' denial of China's market economy status has put Chinese enterprises in an extremely disadvantaged position in responding to foreign anti-dumping investigations. This has not only resulted in a high rate of losing the lawsuit, but the arbitrated dumping tax rate is hardly bearable to many enterprises. Most importantly, the stipulations on denying the status of China being a market economy country is deviating from the reality of China's economic developing and is thus unfair.

Long Yongtu, Chinese chief negotiator in the country's WTO accession long haul, said recently that China's status of market economy does not have to be recognized by other countries. He holds that articles on anti-dumping in China's WTO document are designed to target at some "enterprises, not the whole country".

April 14: New Zealand l officially recognizes that China has established a market economy system. The Chinese government highly appreciates New Zealand's efforts to push forward bilateral economic and trade ties, Chinese Premier Wen Jiabao said. An upcoming feasibility study (for the second half of the year) and talks on a China-New Zealand free trade agreement will push bilateral economic and trade cooperation to a new stage, the premier said.

May 14, Singapore announces its recognition of China's market economy status.

May 29, Malaysia declares it regards China a full market economy in a China-Malaysia joint communique.

On June 16, Kyrgyzstan President Askar Akayev handed over to Chinese President Hu Jintao in Tashkent a written document to confirm Kyrgyzstan recognizes China's full market economy status.

June 21, Thailand becomes the fifth country to view China a full market economy.

During the ministerial meeting of the Asia Pacific Economic Co-operation (APEC) forum on June 4 and 5, Chinese Commerce Minister Bo Xilai talked with Australia Trade Minister Mark Vaile and Chilean Foreign Minister Soledad Alvear and asked them to recognize China's market economy status at an earlier date.

"We expect the two countries to acknowledge China as a market economy as soon as possible in order to create an important condition for FTA negotiations," Bo said.

A China-US working group on market economy status was settled on by the China-US Joint Commission on Commerce and Trade (JCCT) meeting on April 21. The US Department of Commerce held a five-hour-long public hearing on China's market economy status for the first time on June 3. On June 22 Chinese Premier Wen Jiabao met in Beijing with visiting US Secretary of Commerce Don Evans.

The European Union will file the "initial result" of a review on whether to confer China a full market economy status.

Multi-pronged tactics

Haier's production facilities in US

China announced on June 5 the establishment of its first monitoring and early-warning system for trade remedy measures to handle increasing anti-dumping appeals from developed countries after its accession to the World Trade Organization.

Registered companies will get the information like the monitoring and early-warning services on the quantity, future prices, dumping margins and industry injuries of Chinese products exported to the United States, according to the system. Companies can also obtain monitoring reports on US trade remedy measures and have inquiry and training services to respond to anti-dumping investigations or charges.

The Ministry of Commerce will give more help to Chinese enterprises in the process of acquiring the status of market economy either for the specific industries or in the anti-dumping cases they are involved in. Substantial steps to be taken have been specified by the ministry.

Chinese enterprises are encouraged to invest overseas. According to statistics, by the end of 2003, the number of China's enterprises approved by the Ministry of Commerce to invest overseas had reached 7,470, and the contracted investment of the Chinese side rose to 11.43 billion US dollars. Chinese home appliance giant Haier and color TV behemoth Chang Hong both have production facilities in overseas market, including in US.

Chinese enterprises are urged to react actively to anti-dumping cases against them. There are successful stories. For example, China's largest auto glass maker Fuyao Glass Industry Group Co Ltd won a close-to-zero rate, 0.13 percent, in a preliminary anti-dumping ruling by the US Department of Commerce (DOC). Chinese enterprises have won nearly 40 percent of anti-dumping cases against them. But experts say substantial effect will not made be created until the rate reaches 70 percent.

By People's Daily Online