Wednesday, July 6, 2005
The July 4th Financial Times reports: "The European Union should grant China its long-standing demand to be recognised as a market economy, a status that would help Beijing avoid punitive anti-dumping measures, according to Ian Pearson, Britain's minister of state for trade." For copyright reasons, I can't post the complete article; it may be found here.
Being recognized as a market economy isn't going to make China invulnerable to anti-dumping petitions, but it will make it a little more difficult for anti-dumping authorities to use non-market-based (and therefore more flexible and subject to abuse) measures of "normal value": the price that the good under investigation should ideally be selling for in the country where it is produced.
Doing a little random googling, I found a paper that seems to explain pretty well what it's all about in non-technical language, although it's written from an Australian and not an American perspective. There's also a paper available on the Social Science Research Network entitled "European Anti-Dumping Law and China" that looks at the market economy issue.