EC Urges China to Implement Laws in Exchange for Granting Market Economy Status

The European Commission (EC) today called on China to implement appropriate legislation that will eventually lead China be granted market economy status, as requested by the Asian giant. The European Commission denied that its decision might be based on political criteria.

“The technical criteria for a market economy status are clear,”said EU Trade Spokesman John Clancy in a statement.

“It’s not the matter to be decided on a political context. Evaluation of the EC shows that China is making progress,” he said.

The spokesman explained that the Asian country has driven most of the necessary laws, but “its implementation and enforcement have yet to be proven”.

“So the date for the completion of its market economy status is mainly in the hands of China,” he said.

During the World Economic Forum being held these days in the Chinese city of Dalian, known as the “Summer Davos”, China’s prime minister, Wen Jiabao, called for opening up the EU market for Chinese products in exchange for buying sovereign debt from European countries.

Wen called on Brussels to recognize China as a “market economy” status. Under the rules of the World Trade Organization (WTO), in which China joined in 2001, the Asian country should receive full status of market economy in 2016.

However, Brussels decided yesterday to increase tariffs on pavement tiles manufactured in China, from 26.3% to 69.7%, again accusing the Asian country to be selling these products below the price of market.