Robert A. Manning: G-7 divide on market status for China

29 March 2016 / Robert A. Manning, senior fellow of the Brent Scowcroft Center on International Security at the Atlantic Council, wrote a commentary on China's market economy status for the Nikkei Asian Review. He warns that granting this status to China "could cost several million jobs in Europe and the US" and quotes AEGIS Europe as saying, "Europe cannot grant Market Economy Status (MES) to a country that does not merit it." The article also takes a closer look at trans-Atlantic relations and the role of the G-7 in this debate. Read the full article here. A version of this article, entitled The China Market Status Dilemma, was published on Foreign Policy on 30 March. 

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EU-China partnership needs clarity and trade rules – Granting China MES is not an option

18 March 2016 / In a guest blog post on Euractiv, AEGIS Europe spokesperson Milan Nitzschke highlights that the European Commission's current options in the debate on China's MES lack an option offering "accurate implementation of WTO law by treating any economy as a market economy, only if it is a true market economy – and by treating any non-market economy as such – and for the period of time it remains so. (...) It is time that the European Commission reviews its options and presents a proposal that can be properly implemented, transparently communicated and based on the principles of a sustainable and long-term partnership with China." Read the full blog post here

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PRESS RELEASE: MES Public Consultation does not "consider all options nor the full impact of granting MES"

17 March 2016 / Opened quietly in February, the European Commission’s ‘Public online consultation concerning a possible change in the methodology to establish dumping in trade defence investigations concerning the People’s Republic of China’ does not help ensure open debate about one of the most important issues facing European industry: the granting of Market Economy Status (MES) to China.

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Group of MEPs launch “counter-public consultation” on MES for China

15 March 2016 / Today a group of MEPs announced the launch of a "counter-public consultation" on the Market Economy Status of China. The European Commission opened a public consultation on 10 February but it does not contain any space to provide free-form answers and is currently only available in English. By contrast, the counter-public consultation includes open-ended questions and is available in five languages.

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S&Ds call for action to ensure a level playing field in EU-China trade relations

14 March 2016 / The Socialists and Democrats in the European Parliament have adopted a position paper with demands and proposals to ensure fair conditions are upheld in the European Union's trade policy towards China. The group also calls for a strategy to engage the EU's partners in the World Trade Organisation (WTO) to make sure that China is not granted full 'market economy' status before it actually complies with the rules.

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The march of the zombies: China’s excess industrial capacity harms its economy and riles its trading partners

27 February 2016 / The Economist reports on China's oversupply, and the fact that its huge exports of industrial goods are "flooding markets everywhere, contributing to deflationary pressures and threatening producers worldwide". The article dissuades China from exporting its overcapacity as "the flood of cheap goods onto foreign markets has already exacerbated trade frictions", as exemplified by the protest in Brussels on 15 February for free and fair trade and against granting China Market Economy Status. Read the article here (subscriber-only).

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US Democratic candidates warn against closer trade relations with China

22 February 2016 / Both US Presidential hopefuls campaigning for the Democratic nomination warn against closer trade relations with China. On his campaign website, Bernie Sanders states his firm belief that “current trade relations with China are detrimental to job growth” in the US and highlights that “a growing trade deficit with China has led to the loss of over 2 million US manufacturing jobs since 2001”. In this recent article, Hillary Clinton explains that she is opposed to granting market economy status to China because “if they get market economy status, it would defang our anti-dumping laws and let cheap products flood into our markets. (…) China is far from a market economy. If China wants to be treated like a market economy, it needs to act like one.”

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China’s Excess Production Has Intensified Slowdown, Business Group Says

22 February 2016 / The New York Times reports, "The failure of Chinese leaders to tackle the problem of excess industrial production has intensified an economic slowdown in the country and threatens to wreak havoc on global markets, [the European Union Chamber of Commerce in China] said in a new report on Monday. (...) “Without a sustained effort to address it now, overcapacity may well seriously impede the effectiveness of China’s economic reform agenda,” said Joerg Wuttke, president of the chamber." Read the full article here.

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EU businesses warn China on trade strains from overcapacity

22 February 2016 / The Financial Times' Lucy Hornby reports on the European Chamber of Commerce in Beijing's warning that "China’s crushing overcapacity risks inflaming trade tensions as well as swamping the country’s companies with debt". Jörg Wuttke, president of the European Chamber, told reporters in Beijing that China "can’t outgrow this problem any more” and that “politicians need to realise that [Chinese] overcapacity leads to job losses, which leads to protectionism in Europe.” Read the article here (subscriber only).

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China overcapacity 'wreaking far-reaching damage'

22 February 2016 / Deutsche Welle (DW) writes about a report recently released by the European Union Chamber of Commerce in China which warns that Chinese overcapacity is preventing the country's economic reform and damaging its trade relations. The EU industry is notably impacted, as visibly demonstrated in a march attended by 5,000 employers and employees on 15 February in Brussels. Read the full article here.

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European Business Group Urges China to Fight Industrial Overproduction

21 February 2016 / The Wall Street Journal (WSJ) reports that the European Union Chamber of Commerce in China called for Beijing to ramp up efforts to tackle excess production. This overproduction is harming eight key industries including steel, cement and chemicals, but is having knock-on effects in consumer sectors such as consumer electronics, pharmaceuticals, food and apparel. Journalist Laurie Burkitt highlights the industry march in Brussels to protest granting Market Economy Status (MES) to China, which would only worsen the situation. Read the article here (subscriber only).

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Complacency, protectionism: Why China won’t shut underused factories

21 February 2016 / The Washington Post reports that, “China’s industrial overcapacity is “sucking the oxygen out” of its economy, fueling a dangerous buildup in bad loans and now exacerbating trade tensions with the West. Yet although the Communist Party has been aware of the problem for years, it has failed to tackle it. Those are the findings of a new report by the European Chamber of Commerce in China that blames complacency, a lack of leadership and protectionism by local governments for China’s failure to address the problem. (...) The answer, [Chamber president Jörg Wuttke] said, was for the Chinese government to relinquish control of the economy to market forces, as it has promised to do." Read the full article here.

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EU-Industrie protestiert in Brüssel: 5.000 demonstrieren gegen chinesisches Dumping und Marktwirtschaftsstatus

15 February 2016 / Aus 17 europäischen Ländern sind heute über 5.000 Arbeiter und Unternehmensvertreter nach Brüssel gereist, um gegen chinesisches Dumping zu demonstrieren. Der Protest richtet sich vor allem gegen das Vorhaben der Europäischen Kommission, China den sogenannten Marktwirtschaftsstatus zu gewähren ("MES - Market Economy Status") und damit wirksame Antidumpingmaßnahmen zukünftig unmöglich zu machen. Das Industriebündnis AEGIS Europe, das 30 europäische Industrieverbände vertritt, hatte zur Demonstration aufgerufen.

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