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German research institute propaganda EU to recognize China's market economy status is conducive to the development of foreign trade tungsten industry

Recently,  the German economic research institutes authoritative Munich IFO  Institute for Economic Research published its submission to the European  Parliament a report to the EU sends an important signal: should  consider recognizing China's market economy status as soon as possible. Munich, Germany IFO is an independent, authoritative strong Economic  Research Institute, published its business climate index, German  economic sentiment and predict the outcome of economic policy  recommendations by the German governments and the world's attention.

The  so-called "market economy status" concept, is a main target in the  companies rather than the terms of the anti-dumping and subsidies the  country. In  the face of corporate anti-dumping investigation, the company can prove  that its operations in full accordance with the market mechanism, to  avoid discriminatory treatment. Members  of the WTO anti-dumping investigation to determine the dumping margin,  did not get in China "market economy status", the anti-dumping cases  initiated States may choose a surrogate country data cost of the  commodity calculate the normal value, to determine the dumping margin  without the use of their own data, which often lead to the dumping margin is  easily overestimated, dumping determination easy to set up, so that  Chinese enterprises suffer unfair treatment.

At  present, China already has a market economy, recognize China's market  economy status is a general trend, the EU acknowledged this early is a  good thing for China and the EU. Moreover,  the EU should be clear, even if does not recognize China's market  economy status, but also according to the provisions in this year  December 11 terminate the use of "surrogate country" approach in  anti-dumping investigations. So  far, the world has more than 80 economies recognize China's market  economy status, many of them in New Zealand, Switzerland, Australia and  other developed economies. China has become the world's second largest economy, the largest goods  trading nation and the largest trading partner of more than 130  countries.

Although  the EU dependence "does not recognize China's market economy status"  approach to China a number of anti-dumping measures, but it was obvious  problems and contradictions. By  the end of 2014, 51 anti-dumping measures against China, the EU is  still in effect only relates to less than 2% of the EU's total trade  with China, but the EU for EU trade volume less than 2% above the set of  anti-dumping measures accounted for 47% of the total number of existing anti-dumping measures. In addition, for Germany, Italy, France and Spain frequently support  for Chinese iron and steel, chemical industry, anti-dumping, the report  noted, and there is no clear evidence that the so-called "China's  low-cost advantage or dumping" really exist.

The  current European economy is in recovery, is still faced with  uncertainties British "off Europe," the "refugees" and other events  brought about as soon as possible recognize China's market economy  status for the EU in terms of the benefits obvious. EU  economic and trade will lead to a more healthy and rapid development,  contribute to help the EU overcome the current economic difficulties,  consolidate its position in the world economy. Not  to grant China market economy status could threaten the future  prospects for the smooth development of China-EU and China-EU FTA  Investment Agreement negotiations. China  is currently the only decision to Juncker investment from non-EU  countries planned recapitalization by recognizing China's market economy  status, the EU can further strengthen dialogue with China to promote  European business activities in China, on the contrary, it will harm  between Central Europe feelings and mutual trust, bring great negative impact.

For  the industry, the steel trade has been led by the metal sides in  conflict-EU anti-dumping cases centralized body, China supplied 50  percent of the world's steel, a great impact in the UK and the global  steel industry, other metals, such as rare  earth, also accounted for 90 percent of global supply, such as  tungsten, molybdenum and other small metal mainly for export, mostly to  foreign trade companies for a living, to recognize China's market  economy status is conducive to the development of China's foreign trade,  anti-dumping duty margin will  also be more in line with the actual situation in China has greatly  improved the business environment, the industry has been the formation  of the anti-dumping good, their own get more living space and more  equitable international treatment. On tungsten industry, recognize China's market economy status will  facilitate the import and export of tungsten products, tungsten for the  current downturn in the market a boost.

Two  sides to strengthen communication remains an important channel to solve  the problem, which for the development of Central Europe and the world  economic recovery will benefit China-EU Summit was held in may help the  two sides to seek more on 'whether to recognize China's market economy  status' issue good solution. But  whether to grant China market economy status and the fulfillment of  Article 15 are two different things, "China's WTO accession protocol",  the two should not be confused. When  the "Protocol" as specified in article 15, WTO members should at  December 11, 2016 to terminate the use of "surrogate country" approach  in anti-dumping investigations. This  is an international treaty obligations should comply with all WTO  members, and does not depend on any member of the national standards. Therefore,  regardless of whether to grant China market economy status, the EU as a  WTO member, there are legal obligations of Article 15, "the Protocol",  and can not avoid shirk.

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