The Path To Obtain China’s Market Economy Status

Ever since joined the World Trade Organization, China has made significant progress in its economic transition. But some of the member states, for example the United States and the European Union, still refuse to recognize China as a market economy(ME). On December 11, 2016, the subparagraph(a)(ii) of paragraph 15 of China’s Accession Protocol shall expire. The issue of China’s economy status shall once again be a major concern of relevant parties.In order to discuss the question that whether shall automatically acquire the ME recognition of the member states, we should firstly take a close look at the provisions of paragraph 15, as well as the opinions set forth on Global Trade and Customs Journal by a number of scholars in response to Jorge Miranda in 2014.Besides, opinions from the Appeal Body of the EC-Fasteners Case also helped with the conclusion that according to the Vienna Convention on the Law of Treaty, the expiration of paragraph 15 shall terminate the NME methodology. Although it cannot cause the automatically recognition of the MES, the concept of MES shall be left without foundation.It is also necessary to understand that the NME problem is not only restrained in the field of WTO regulations, but also a national law concept. If the US and the EU refused to grant China MES because of their national law procedures, we should be fully prepared for the WTO suites and the pleas domestically, where the interpretation of paragraph 15 shall be the key issue. We can also make a full use of the administrative review procedure as Ukraine had in pursuit to MES within a changed circumstances review of DOC.Besides, the NME status problem is not the only basis for the US and the EU to implement discriminatory treatment on other countries. We shall also make a precautionary analysis on the other excuses they will use. After examined the DS474,Rusal Armenal ZAO v Council of the European Union, and the Customs Act 1901 of Australia, we have found a possible way to neutralize the Special Market Conditionrule.Opinions in this article is only on the basis of law and regulation, even though the problem is massively political influenced. The article has come into a conclusion about issues like how to interpret the paragraph 15, what is the strategic plan when suing in front of CIT, the Court of Justice of the European Union, and DSB, and what other discriminatory measure and countermeasures could be used. It shall be not only a path of difficulties, but also a path towards equity.