China's market economy status

Key messages

The question of market economy status (MES) should be treated in accordance with WTO and EU rules and be based on its own merits. European business believes there is no requirement to automatically grant MES as a direct consequence of the expiry of Section 15 subparagraph (a)(ii), because the remainder of the subparagraph, parts (a) and (a)(i), remains in place.

The EU decision-making process should be transparent and involve the European business community. China has emerged as an important player on the world scene and is a key trade and investment partner of the EU. Any decision should therefore be based on a solid and comprehensive impact assessment which takes into account China's policies and their impact on EU interests.

There are deep concerns within major parts of the European business community about what the expiry of Section 15 subparagraph (a)(ii) could mean for the EU anti-dumping procedures and industrial competitiveness. The EU should therefore maintain effective trade defence instruments that take the real market situation in China into account.

The EU must coordinate with and take into account the positions of other major WTO members such as the United States. It is especially important that the EU avoids trade diversion of Chinese exports towards Europe as a consequence of differing views.

It is in the interest of European business that the EU strives for a sound and balanced economic relationship with China. To achieve this it is important that the EU proactively engages China through all available channels.