China’s Market Economy Status Adoption of Surrogate Country Methodology After 2016

Abstract

After the expiration of paragraph 15(a) (ii) of the Accession Protocol of the People’s Republic of China on 11 December 2016, it is still in doubt whether China’s market economy status will be automatically recognized. On 12 May 2016, the European Parliament adopted a non-legislative resolution to deny China market economy status. Through the analysis of the criteria of market economy status and the application of surrogate country methodology, this article comes to the conclusion that , in any case, no definite connection exists between awarding a country non-market economy status and applying the surrogate country methodology to this country’s products. Regardless of China’s market status, Paragraph 15(a) of the Accession Protocol of the People’s Republic of China cannot be cited as the legal basis for applying the surrogate country methodology after its expiration. Finally, this article explore the possible way for WTO importing members to apply the surrogate country methodology substituting Paragragh 15(a) of the Accession Protocol of People’s Republic of China, which is through the term “particular market situation”, as stipulated in Article 2.2 of the Anti-Dumping Agreement