Gulf Daily News
Vol XXVII NO. 282 Monday 27 December 2004
China eyes market economy status
BEIJING: When Venezuela recognised China’s status as a market economy last
week, Beijing secured yet another pawn in a low-key battle it is waging
against the US and Europe, analysts said. It is a battle for the two
dominant powers in world trade to also grant China the much-coveted market
economy label, and the stakes can be counted in billions of dollars.
“They’re signing up more and more countries to acknowledge their market
economy status to increase their bargaining power in the World Trade
Organisation,” said Andreas Lauffs, a trade lawyer at Baker McKenzie. With
Venezuela’s nod, which comes on the heels of a similar move by Pakistan
earlier in December, a total of 27 countries have recognised China’s full
market economy status, ranging from Brazil and Russia to Armenia. Market
economy status is crucial because it helps Chinese companies which run the
risk of anti-dumping charges.