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Business / Economy

Sooner better than later to recognize China's market economy status

(Xinhua) Updated: 2016-03-10 10:43

BEIJING - The draft of China's 13th Five-Year Plan, which is submitted to lawmakers for review and approval during the ongoing two sessions in Beijing, has shown policy-makers' resolve to stick to the path of making the economy more modern and open.

The roadmap for China's economic and social development for the next five years dedicates one separate chapter to elaborate the government's resolve to continuously building a modern market system, which set a strong tone for furthering the Chinese market's connection with the world.

It comes as the European Union (EU) launched an in-depth assessment determining whether to grant China market economy status (MES).

Methods used in the EU's anti-dumping procedures on imported Chinese products are currently based on China not being considered a market economy. Under the rules, China's exports have fallen victim to unfair and discriminatory EU practices.

The legal basis for the rules, however, are set to expire in December this year, under the provisions of the World Trade Organization accession protocol signed by China.

China's national plan to build an open and sharing economy should give EU more confidence to grant an early recognition of China's MES.

With ample well-educated workforce, the 38-percent high rate of abundant household savings and the possession of the world's No 1 amount of foreign exchange reserve of over $3.33 trillion, the Chinese government's continuously opening up will not only benefit China's economic stabilization and growth, but also the global economy.

This has been recognized by a growing number of countries. So far, over 80 economies including Russia, New Zealand, Singapore and Australia, have recognized China's MES.

China wishes EU would join the team the soon the better, as it would facilitate a recognition of China's MES in the 162-member World Trade Organization.

In China's 2016-2020 plan draft, the government underlined keywords of "innovation, coordination, the environment, opening up and sharing" as measures to fulfill its economic goals for the coming years.

In particular, the government vows to break up barriers between different administrative and geological interests in order to allow a free-wheeling flow of products and resources on the market.

It is also in the written clauses to continue to mitigate the government interference on pricing to allow competitive pricing in the sectors of power supply, energy, transport and telecom.

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