According to the initial terms of the agreement, as of December 11th, 2016, article 15, paragraph (a) (ii) of Chinas WTO accession protocol ceased to apply.
In their latest proposal, the European Commission wants to abolish the differentiation between market economies and non-market economies. In cases of unfair trade practices through state interventions, like the ones we have observed in certain sectors in China, the European Commission wants to continue to allow to set production costs and concurrent dumping margins by comparing costs in third counties.
The DIHK and the Delegations of Industry and Commerce in China continue to support a modernization of measures to protect trade. It is important to efficiently and transparently implement these rules to lower overall bureaucratic burden and to address the needs of small and medium sized enterprises. The proposal by the European Commission needs to adhere to WTO-rules and create a clear perspective for all involved parties. We also support the proposal, as equal conditions for competition are an important prerequisite for free trade and open markets. We also believe that the proposal sufficiently addresses the complex political dimension of this topic. Neither party is interested in a trade war.