Should China be Granted Market Economy Status? : In View of Recent Development

Abstract

The Protocol for China's accession into the WTO stipulated certain differential treatment for China, including the determination of normal value in anti-dumping investigations for the transitional period of 15 years. This treatment was authorized by the Protocol in response to concerns raised by other WTO Members at the time of China's entry into the WTO. Since the transitional period is over in November 2016, there is an argument supporting the grant of market economy status to China, although the Protocol does not require the automatic grant of market economy after the passage of the transitional period. However, China's recent trade measures, which have been adopted to press another WTO Member to meet its political objective, raise a question as to whether China is indeed ready for market economy status. This article analyzes such case and offers a view on the grant of market economy status to China.