China denounces US MKT economy status opposition

CNC
Added On December 4, 2017

China's Ministry of Commerce (MOC) Saturday expressed strong dissatisfaction with the U.S. opposition to granting it market economy status in the World Trade Organization (WTO).

The office of the U.S. Trade Representative said Friday that the U.S. had submitted the statement of opposition to the WTO as a third-party brief in support of the EU, in a case brought by China arguing the "surrogate country approach" should be dropped after the expiration date.
 
The MOC said the case has nothing to do with whether China has been granted market economy status or not as there are no standards in WTO rules for the status, urging all members to drop the practice.
 
When China joined the WTO, members use costs of production in a third country to calculate the value of products from countries on their "non-market economy" list, which includes China.
 
In accordance with Article 15 of the accession protocol, the surrogate country approach expires on Dec. 11, 2016.
 
When the approach expired, some member nations, including Japan and the United States, indicated they would not honor their commitments with no plans to change their trade policies. 
 
The MOC has warned that their refusal would put trade ties with China at risk.