Notes from Kelley Drye & Warren LLP
Conference. Washington, DC. July 2016
Economists and lawyers started to discuss
whether China’s economy will be considered as ‘market economy’ as WTO accession
expires on December 11, 2016. As December approaches, China will want all
of section 15 to expire, thus attaining ‘market economy’ status. However, the
competing arguments are this:
1/ Within the 15 years (since 2001) have
China proven itself as a ‘market economy’ to its competitors;
2/ Did China played by the ‘market economy’
rules and regulations both regionally and globally;
3/ China’s biggest 500 companies are
state-owned, according do this stats, China is not a ‘market economy’, after
expiration of Section 15, what would China do with these 500 companies;
4/ The Chinese government’s role in import,
export, subsidies control will have to loosen ‘if’ China were to be considered
as a ‘market economy’;
5/ WTO Section 15 controversy is really
based on the US Congress’ GATT filings;
6/ Growing concerns over worldwide economic
elites leading the market and telling the world how to run its economy;
7/ China is not playing by the rule, has not
been, and will not;
8/ China’s overcapacity of aluminum, silver,
and steel will force government control on import, and subsidies, and pricing;
9/ What model of trade would China
exemplify? ‘Market economy’ creates distortions and if China is aware of the
situation, then China will take different approach;
10/ Unclear value of trade agreements
between the EU, China, the US and Canada;
11/ Expiration of 15 years will only apply
to 15 a, iii; rest of them will remain.
The recent ruling from the international
arbitration on the China-Philippines island dispute is one of the realistic
pictures of Chinese approach towards international law and order. The
disapproval of the verdict and the continuation of the militarization of
the Spratley Island jeopardizes the overall peace and security of the region by
forcing neighbor countries to further militarize for national security purposes.
Notes from Kelley Drye & Warren LLP
Conference. Washington, DC. July 2016.
Related links:
- State-owned
companies of China:http://fortune.com/2015/07/22/china-global-500-government-owned/
- Wiley
Rein LLP LAW360:http://www.wileyrein.com/media/publication/159_China-Can-Still-Be-Treated-As-A-Nonmarket-Economy-After-2016.pdf
- WTO
China Accession:https://www.wto.org/english/thewto_e/countries_e/china_e.htm
- PCA
verdict: http://www.pcacases.com/web/view/7
