China MES: Commission to Debate China's "Licence to Dump" on 20 July

BRUSSELS, July 18, 2016 /PRNewswire/ --

Millions of jobs and all European manufacturing sectors at risk 

On Wednesday 20 July, the College of European Commissioners will debate the future of Europe's entire manufacturing industry when it discusses if China should be granted Market Economy Status (MES).  

"What China wants from the EU is a 'licence to dump' by treating it the same as bona fide market economies in any EU anti-dumping investigation. There is a serious risk that the European Commission de facto proposes granting such a licence, either intentionally, or not. The consequences however would be the same, regardless of additional measures put in place. The doors would be left wide open for an unprecedented attack on all manufacturing industries across the European Union. This will in turn endanger millions of jobs," said Milan Nitzschke, spokesperson of AEGIS Europe, a grouping of 30 European manufacturing associations.

"This is not only about overcapacity in steel, it is about every product category and technology from A such as Aluminium, to Z as in Zero Emission Technologies. It will affect every part of the economy, from SME sectors to those sectors with large-scale enterprises," warned Nitzschke.

In the EU there are 5 clear criteria that define a market economy. These criteria are undisputed - and they existed since before China joined the WTO 15 years ago. To date China has only met 1 of the EU's 5 criteria.

"It is imperative to relate any proposal about the calculation methodology used in anti-dumping proceedings to the EU's 5 market economy criteria. Without this, anti-dumping measures in the EU would be vulnerable to challenge. Consequently investments in the EU would fall under a cloud of uncertainty," forewarned Nitzschke.

The unfounded Chinese demand to be treated the same as bona fide market economies, would effectively render the EU's anti-dumping measures weak when it comes to imports from China. Furthermore, it would disregard the fact that Chinese state-financed export prices are well below international market prices and costs. 

"To draw a comparison with sports - it is like having increased drug testing at the Olympic Games except for Chinese athletes who would just show a medical certificate issued by the Chinese government," Nitzschke concluded.