China steps up battle against tough EU rules

CHINA asked the World Trade Organisation to create an expert panel to examine the “surrogate country” approach used by the European Union to calculate antidumping measures applied to Chinese exports.

When China joined the WTO in 2001, it was written into the terms of the deal that member states could treat it as a non-market economy for 15 years.

The deadline passed late last year, but the EU has nevertheless opted to preserve tough rules that protect it from cheap Chinese products flooding its markets.

Yesterday, China asked the WTO to establish a panel to rule on its demand that the EU stop using a surrogate country system -- judging the price of Chinese goods against a third country’s -- to determine whether China is selling its products below market prices.

Beijing has previously said that the refusal to grant China market economy status is an example of covert protectionism and double standards by the West.

The request to the WTO came after China filed disputes against the EU and the United States over the issue.

After the parties failed to reach an agreement during WTO-led consultations, the door was left open for China to ask the WTO to create a panel of experts to review the case.

The EU opposed the request. The EU’s opposition blocks the panel creation for now but, under WTO rules, if China makes a second request, it will automatically go through.

The WTO’s panels of independent trade and legal experts usually take months to render their decisions.

They can authorise retaliatory trade measures if they rule in favour of a plaintiff.

The WTO polices global trade accords to ensure a level playing field for its 164 member economies.