БОЛОР Сан: WTO| Republic of China: Accession Article 15

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.

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Sunday, August 21, 2016

WTO| Republic of China: Accession Article 15