| Author (Person) | Godement, François |
|---|---|
| Publisher | European Council on Foreign Relations (ECFR) |
| Series Title | Policy Brief |
| Series Details | June 2016 |
| Publication Date | June 2016 |
| Content Type | Journal | Series | Blog, News |
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'China’s market economy status and the European interest', a policy paper, from the European Council on Foreign Relations published in June 2016, argued that the question of market economy status was a red herring. The term was not even defined under WTO rules. In fact, China was focusing its attention on the battle to get rid of Europe’s special anti-dumping measures. Keeping the current measures in place would only be a short-term solution, as China will launch a legal challenge once the deadline runs out. However, Europe should not dismantle existing protections for its producers before it has put in place an effective alternative. The only clean way out is a broad reform of Europe’s trade defence instruments, to ensure protection for producers without discriminating against China. This will take time, and Europe should try to reach an understanding with China in order to avoid a legal dispute or trade war in the interval. Author François Godement said: 'It is hugely important for Europe to find a trade regime that is suitable for China. It is the Union’s second-biggest trade partner and is a key link in the global production chain, without which the shelves of our shops would be half empty. The EU’s defining talent is its ability to set a mix of rules that balance free trade and the welfare state. Sitting passively while this balance is under threat, because China has grown more than it has changed, is not an option. Inaction would only feed a massive popular backlash against global free trade'. |
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| Source Link | http://ecfr.eu/page/-/ECFR_180_-_CHINA_MARKET_ECONOMY_STATUS_AND_THE_EUROPEAN_INTEREST_%28002%29.pdf |
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| Subject Categories | Trade |
| Countries / Regions | China, Europe |
