Bei­jing op­poses new dump­ing rules

China Daily (USA) - - FRONT PAGE - By FU JING in Brus­sels and ZHONG NAN in Bei­jing Con­tact the writ­ers at fu­jing@ chi­nadaily.com.cn

Bei­jing has urged the Euro­pean Union to drop its pro­posed use of new cri­te­ria in cal­cu­lat­ing dump­ing, which may not rec­og­nize the full mar­ket economy sta­tus that has been granted to China by nearly 100 coun­tries.

Min­istry of Com­merce spokesman Shen Danyang said on Thurs­day that the new method pro­posed by the Euro­pean Com­mis­sion would con­tinue its prac­tice of not treat­ing China as a full mar­ket economy re­gard­ing China’s for­eign trade ac­tiv­i­ties.

“These new mea­sures have no ba­sis in (World Trade Or­ga­ni­za­tion) rules, and are likely to be taken as the tools of trade pro­tec­tion. China thinks that coun­tries have dif­fer­ent eco­nomic de­vel­op­ment modes and eco­nomic man­age­ment modes be­cause of dif­fer­ent na­tional con­di­tions, de­vel­op­ment phases and cul­tural tra­di­tions,” said Shen.

In Wed­nes­day’s pro­posal, Brus­sels in­tro­duced the con­cept of “mar­ket dis­tor­tions” for cal­cu­lat­ing dump­ing. The Euro­pean Com­mis­sion said sev­eral cri­te­ria will be con­sid­ered, such as state poli­cies and in­flu­ence, the wide­spread pres­ence of state-owned en­ter­prises, dis­crim­i­na­tion that fa­vors do­mes­tic com­pa­nies and the in­de­pen­dence of the fi­nan­cial sec­tor.

The Euro­pean Com­mis­sion sub­mit­ted the pro­posed amend­ment on pro­tec­tion against dumped im­ports to the Euro­pean Coun­cil and the Euro­pean Par­lia­ment on Wed­nes­day.

Chi Fulin, pres­i­dent of the China In­sti­tute of Re­form and De­vel­op­ment, said the pro­posal has in­di­cated that the Euro­pean Com­mis­sion is “back­slid­ing and play­ing a dan­ger­ous game” in deal­ing with the China-EU re­la­tion­ship.

“This has long been de­bated be­tween China and Europe, but the Euro­pean Com­mis­sion’s pro­posal, against a back­drop of rising pro­tec­tion­ism in the West, is dam­ag­ing and un­wise,” Chi said. “I think the Euro­pean Com­mis­sion should with­draw this be­fore it en­ters the ap­proval process.”

Pierre De­fraigne, ex­ec­u­tive direc­tor of The Madariaga — Col­lege of Europe Foun­da­tion, a Brus­sels think tank, said the EU should have treated China as a mar­ket economy at an ear­lier date, but it has failed due to its long­time pol­icy of fol­low­ing the United States re­gard­ing China pol­icy.

“I have long called on the EU to treat China as a mar­ket economy, but it is re­gret­ful that it has not shown such po­lit­i­cal vi­sion as of to­day,” De­fraigne said.

Min­istry of Com­merce spokesman Shen said: “These new mea­sures have no ba­sis within the WTO frame­work and are likely to be taken as the tools of trade pro­tec­tion.

“We urge the EU to use the com­mon WTO prac­tices and rules in the anti-dump­ing cal­cu­la­tion,” he said.

Shen said the EU has a re­spon­si­bil­ity to take the lead in abid­ing by WTO rules, to ful­fill in­ter­na­tional obli­ga­tions, to use trade rem­edy mea­sures prop­erly and to avoid send­ing wrong sig­nals of trade pro­tec­tion­ism to the world.

If the EU in­sists on the pro­posed cal­cu­la­tion method, “China will re­serve all the nec­es­sary means to pro­tect its rights,” Shen said.

For­eign Min­istry spokesman Lu Kang said on Thurs­day that the EU is the “core mem­ber” of the WTO and a cham­pion in ad­vo­cat­ing mul­ti­lat­eral trade and free trade.

I think the Euro­pean Com­mis­sion should with­draw this be­fore it en­ters the ap­proval process.”

Chi Fulin, pres­i­dent, China In­sti­tute of Re­form and De­vel­op­ment

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