This year will see the world’s three largest economies – the EU, the US and China – become increasingly tangled in a complex trade tussle with considerable political and economic ramifications for themselves and the rest of the world. China has requested that the WTO grant it Market Economic Status (MES) and the response by the European Union and the United States could determine the outcome. MES recognition for China will see anti-dumping instruments currently available to countries importing from China weakened. Therein lays the nub of the issue.
For Australia, which granted China MES 10 years ago, the issue seems arcane. Since Canberra recognised China as a market economy, two-way trade has grown to $150 billion and comprises one-quarter of Australia’s total trade with the world. Yet MES recognition of China by the US and EU could prove a further boon to our relationship with China, not to mention to international trade and global economic growth.
There is much at stake for everyone doing business with China.
Powell Tate’s offices in Beijing, Brussels, Washington and Sydney, have produced a short report examining the issues. The report can be downloaded from here.