EU must confront China's market economy status - Eurofer

In connection with the Beijing summit of the European Union - China, the Eurofer association made an appeal not to grant the status of a market economy to China.

The Association of Metallurgists of Europe once again warns against premature granting of the status of a market economy to China. According to Axel Eggert, CEO of Eurofer, in accordance with the provisions of Article 15 of the Protocol on China's accession to the WTO after December 11, 2016, the European Union must continue the practice of specific manufacturers proving that they are working in a market economy, said Axel Eggert.

According to Eggert, the attitude of the European Union is surprising, as China must make progress in fulfilling its obligations, reducing huge overproduction in many sectors, as well as introducing market economic conditions. Eggert believes that the European Union must develop effective instruments to protect the market in order to avoid the risk of losing millions of jobs and tens of billions of euros in investments a year.

“The EU must stand firm on the ground and resist the pressure of the Chinese government to make harmful decisions on the status of a market economy, especially when China does not fulfill its own obligations,” says Axel Eggert. Having entered the WTO in 2001, China made a commitment, in particular, that prices in every sector of the economy will be determined by market processes, and prohibited subsidies will be eliminated.

“In addition, the government should not interfere with the work of state-owned enterprises. “We expect that China will make more progress in fulfilling these obligations and become, in reality, a market economy,” said Axel Eggert.