2016年CRI European expert: protectionism dangerous for Europe

European expert: protectionism dangerous for Europe

As a condition for being admitted to the World Trade Organisation 1, China agreed in 2001 that other members could treat it as a "non-market economy" for 15 years ending on December 11, 2016. 

That gave trade partners the advantage of using a third country's prices to gauge 2 whether China was selling its goods below market value and made it relatively 3 easy for aggrieved 4 parties to prosecute 5 anti-dumping claims against China.

The expiration 6 on Sunday requires WTO members to end this "surrogate country system."

However last month, the European Commission presented its long-awaited proposal for a new methodology for anti-dumping investigations 7, obviously linked to the scheduled expiration of the current "non-market status" treatment toward third countries, including China. 

If approved, it will ensure that the bloc's trade defence arsenal 8 could maintain an equivalent level of protection.

In an interview with China Radio International, Bernard De Wit, with the Belgian-Chinese Economic and Commercial Council (BCECC) suggested the EU fulfill 9 its commitment.

"I would say legally speaking you have commitment to sign and normal procedure would be granted to China this status. But politically speaking, we will have to see we are not at an easy time because economy is some countries is not going so well."

The European Commission proposal came just months after the EU Parliament said in a resolution that China's excess production capacity and cheap exports were hurting EU employment, and urged that China should not be granted Market Economy Status.

De Wit says rising protectionism is posing a threat to economic globalization and some Chinese enterprises in Europe have indeed become victims of this trend.

"People don't see when a Chinese company sets up a foreign branch, jobs will be provided by the company. Instead, they see competition. This creates difficulties. This creates anger. This is not easy to deal with."

He further warns that it's dangerous for the EU to turn to protectionism.

"I think the anti-dumping measures at beginning are purely 10 technical measures, but now they are political measures. Now it becomes more political. We should avoid going too far in these measures."

China is the EU's second-largest trading partner, with daily bilateral 11 trade exceeding 1 billion euros, about 1.13 billion U.S. dollars.

De Wit also suggests the two sides enhance communication over the issue.

"Personally, I think we should go ahead with the treaty with China which is also better for a bigger picture and not having each country going apart. We will lose from that."

So far, more than 80 WTO members including Australia, New Zealand and Switzerland, have given up the surrogate country approach towards China.

Beijing has urged Brussels to strictly 12 fulfill its obligation without any additional conditions by the due time.