Beijing lodged a complaint Monday at the World Trade Organization (WTO) against the US and Europe after they failed to treat China as a market economy and ease their calculations of anti-dumping duties on Chinese goods, Reuters reports.
When China joined the WTO in 2001, its accession terms allowed other WTO members to treat it as a non-market economy and use a third country’s prices to assess whether Chinese goods were being sold below cost.
But part of that clause expired on Dec. 11, prompting China to argue that WTO trading partners must now drop their use of such surrogate pricing, the report said.
“Regretfully, the United States and European Union have yet to fulfill this obligation,” China’s Commerce Ministry was quoted as saying in a statement.
The US Commerce Department said China’s WTO accession agreement did not require members to automatically grant market economy status to China, and allowed continued use of “alternative antidumping methodologies”.
“The United States remains concerned about serious imbalances in China’s state-directed economy, such as widespread production overcapacity, including in the steel and aluminum industries, and significant state ownership in many industries and sectors,” a senior Commerce Department official was quoted as saying in a statement.
“China has not made the reforms necessary to operate on market principles.”
While the Obama administration made the decision not to change the dumping calculations, the case will be litigated by the incoming Trump regime, which has promised a much tougher trade stance on China.
The US and EU are some of the biggest levelers of anti-dumping measures against China. Beijing claims that the measures have seriously affected exports and employment for Chinese firms.
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