Merkel backs China’s market status, but homework required
HEFEI, China: German Chancellor Angela Merkel said Germany, in principle, favoured granting China ‘market economy status’ — a shift that would make it harder for the EU to protect local industry from Chinese competition — but said Beijing still had work to do.
The European Union and other World Trade Organisation ( WTO) members need to decide whether to grant China ‘market economy status’ (MES) at the end of 2016.
The WTO recognised when Communist China joined the body in 2001 that local prices were not set by market forces, but expected that 15 years later Beijing would play less of a role in directing the economy.
During her two- day visit to China, Merkel said yesterday that China still had to some work to do before it could be granted MES and the status would also be subject to checks by the European Commission. — Reuters