Market Economy: China and Trade Disputes

market economy: As the date nears, there is increased focus on whether or not China major trade partners and competitors like the US and the EU will grant MES status to Beijing, according to Deutsche Welle. Recognizing China as a market economy would mean that other countries would have to treat the Communist-governed Asian giant as a free market equal when it comes to resolving trade disputes. When it joined the WTO, China agreed to be treated as a non-market economy NME for up to 15 years in return for assurances that it would attain Market Economy Status MES afterwards. It unsurprising that China wants the MES, which puts an end to these countries treating it as an unequal partner. The current NME status has placed China in a disadvantageous position in anti-dumping litigations. US law defines an NME as any country that does not operate on market principles of costs or pricing structures, so that the sales of merchandise in such a country do not reflect the fair value of the merchandise. (news.financializer.com). As reported in the news.