China urges US to stop using surrogate country approach
China has urged the US, once again, to fully comply with the obligations under Article 15 of the Protocol on China’s accession to the World Trade Organization in a timely manner, said the Ministry of Commerce on Friday.
The US Department of Commerce said on Nov 23 that the time was not yet ripe for the country to reconsider whether to grant China market economy status. “At this moment it is not ripe for us to change our protocol,” said US Commerce Secretary Penny Pritzker.
The US should not “confuse the issue,” Shen Danyang, spokesman for the Ministry of Commerce, said at a news conference on Friday in Beijing.
“Admitting China’s market economy status is one issue; fulfilling the obligations is another … Having reiterated China’s position on many occasions, we hope the US can face up to its international commitments timely and completely.
“This would be good for the economic and trade cooperation between the two sides.”
In accordance with Article 15, WTO members shall stop using the surrogate country approach to conduct antidumping investigations on Chinese exports by Dec 11 this year.
Under the surrogate country system, the US, the EU and some other members use prices in a third country as a benchmark to calculate the normal value of export products from China.
Shen said that China is entitled to its rights as a member of the WTO, while all other members must deliver on their WTO promises.
China is stepping up efforts to safeguard its legal rights.
Xue Rong jiu, vice-chairman of the China Society for WTO Studies, said all members should abide by the WTO rules, and he urged the international organization to settle the dispute.
“This is a serious issue for all WTO members … After the accession to the WTO, China has brought benefits to itself and the global economy. We hope all countries will stop using the surrogate country system in investigations against China,” Xue said.
In mid-November, VicePremier Ma Kai won support from the UK and France on the issue during a seven-day visit. Their high officials promised they would influence the EU to fully recognize international commitments.
So far, about 150 economies have duly given China market economy status, among which nearly 100 are WTO members.
of a Chinese company demonstrates an electric piano that can teach people how to play the instrument at a consumer electronics show in Las Vegas.
Ministry pushes export upgrading
China is accelerating the pace of facilitating its companies to further integrate and move up the global value chain, the Ministry of Commerce said on Friday.
The government recently outlined guidance to impel mainland companies to become actively involved in the global value chain.
“The guidance is the first of its kind. It will have a positive impact leading Chinese companies to explore ways and methods to move up the global value chain and sustain their success in the international market,” said Shen Danyang, spokesman for the Ministry of Commerce, at a news conference in Beijing.
The guidance puts forward a policy framework, including industrial funds, fiscal taxation, trade facilitation, finance and innovation.
Under the guidance, the government will support Chinese companies to increase the added value of their export products.
For example, it reinforces the importance of international cooperation and communication in regards to the accounting method of added value, policy and rule making.
In addition, the guidance proposes specific ways as to how Chinese industries could move up the value chain, and calls for an evaluation system.
The full text of the guidance will be released soon, according to Shen. The Ministry of Commerce led six other concerned government bodies to draft the guidance.
Huang Yanghua, an associate professor at the Institute of Industrial Economics under the Chinese Academy of Social Sciences, Beijing, said that small- and medium-sized companies, when getting connected to the global value chain, would benefit from convenient market access, low-cost factors of production and innovation-oriented partners around the world.