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It looks like China is moving in the right direction to be granted market economy status said European Union (EU) Trade Commissioner Peter Mandelson yesterday. He explained at a press conference in Beijing that China was making appropriate moves in respect of the EU criteria for gaining market economy status.

 

"In the respect of the criteria (of market economy status) I believe China is heading in the right direction,” said Mandelson. “I believe it should be possible to recall some progress in the autumn when this matter is reviewed," he told yesterday’s press conference in Beijing.

 

The EU criteria for full market economy status include "markers" on the level of state intervention, bankruptcy legislation and accountancy law. The EU contends that China has not yet met all the criteria.

 

No holding market economy status has become the Achilles' heel of Chinese exporters involved in anti-dumping investigations because their production costs are not accepted. Mandelson proposed that officials from the two sides meet as soon as possible to move the issue forward.

 

"China has been looking at relations with the EU in overall and strategic terms and it is in the interests of both sides to further promote economic relations," said Vice-Premier Wu Yi, who met Mandelson yesterday.

 

Mandelson said he considered China's resurgence "not as a threat but as exciting and good for Europe." However, he also called on China to further open its markets to European investors.

 

"The more the Chinese door swings open the more European citizens will see our shared interests," he said.

 

During Mandelson’s visit Wu and other Chinese officials have also discussed a number of issues which have caused friction between the two economies.

 

As for the anti-dumping investigation over Chinese leather shoes Mandelson said he would look at the evidence and consider whether to grant some Chinese companies market economy treatment. He also said consultations between China and Europe over an auto tariff dispute had been concluded.

 

Together with the United States the EU has filed World Trade Organization complaints against China stating that the nation's tariffs unfairly force carmakers to use Chinese-made parts in cars assembled there.

 

Despite the frictions China and the EU enjoy a healthy trading partnership with trade totaling 210 billion euros (U$269 billion) last year.

 

(China Daily June 9, 2006)