China Pushes for Market Economy Recognition; Repercussions for Anti-Dumping
BEIJING, China – China is currently actively seeking to get market-economy status. Once that is established it will have repercussions for the current 48.5% anti-dumping duties on bicycles imported from China.
According to a report in the China Daily, Beijing expects to ‘automatically’ gain recognition as a market economy by the end of the 2016 by the European Union, the US and Canada based on the World Trade Organization accession protocol 15 years after China entered the global free trade system in December 2001.
Result of market economy status
Once such status is given, the developed economies would not be allowed to levy anti-dumping taxes against China’s exports by using a constructed value based on costs and prices from outside the exporting country.
Stop of anti-dumping duties
It does not mean that the anti-dumping duties on bicycles will stop by the end of this 2016. The current anti-dumping measures on bicycles imported from China into the EU member states run up to June 2018. Before the end of that term it is expected that the European Bicycle Manufacturers’ Association (EBMA) will lodge a requests to the European Commission for another anti-dumping review. The investigation involved in such a review will take up to 9 months and with that the end of the current 48.5% anti-dumping rate om bikes imported from China is expected for March 2019.
The anti-dumping duty does not apply to the import from China of electric bikes on which a 6% import tax is levied. The regular import tax for bicycles from China as well as other countries is 14%.
Preliminary assessment this week
The China Daily also reports that the European Commission will give its preliminary assessment on China’s market economy status next week. While most EU member states have recognized China’s reform progress, it is said that countries such as Italy and France have expressed the difficulties they face should the decision go in favour of China.