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Amid its worrying moves, EU granting China market economy status not a bilateral negotiation

By H.E. Ambassador Yang Yanyi, Head of the Chinese Mission to the EU (China Daily Europe) Updated: 2016-02-16 03:22

Contrary to my expectation, he didn't pick a fight with me. Rather, he was very friendly, frank and open-minded. Of the many interesting points he shared with me, three are especially impressive.

One, China represents more of an opportunity than a challenge. For many years Western policymakers and scholars, as well as media pundits and commentators, including those in Europe, have engaged in heated debates on whether the rise of China represents a threat or an opportunity for the current international order. In recent times, the "threat-talk" has regained momentum.

For Europe, China is both a challenge and an opportunity. In the final analysis, China represents more of an opportunity than a challenge. Putting in perspective, China's moving from major exporter of low-value added manufactured goods towards higher-end production and domestic consumption augurs well for Europe.

And it is very important for Europe to keep in mind there is only one China in the world and Europe should not miss the opportunity that a transforming China will bring to the rest of the world.

Two, Europe and China can and should work with each other and not against each other.

Europe and China are neither strategic competitorsnor rivals. With long-standing civilization behind them, both Europe and China set great store by economicdevelopment as well as social equity and justice. In areas where the two sides diverge both have the wisdom and capability to accommodate and work things out in a mutually beneficial manner. The successful settlement of the solar panel dispute was just a case in point.

Three, it is imperative that Europe hold on to its values of openness and inclusiveness. While the concerns and worries of the steel sector could be well appreciated, it is highly necessary to remind ourselves that to keep Europe's social model and give concrete hope to European citizens and the younger generation, Europe must reform and change. The same goes true for the steel industry. Even if China is not out there in the steel industry market, there are other competitors with competitive edge.

Though voice like this is not very much in the headlines of the local media, they are worth listening to and heeded to.

Before I conclude, I wish to reiterate one more point. Whether or not recognizing China's market economy status, the EU and all other members of the WTO are under the obligation to apply the rules of the WTO, namely Section 15 of the Protocol on the Accession of China to the WTO which requires Members to stop using "analogue country method" in anti-dumping investigations against China as of December 11, 2016.

It should be clarified and not confused, this is not a bilateral negotiation between China and the EU. This is not about whether or not China is up to the market economy criteria of the EU. This is simply irrelevant. The real issue is about the EU's standing by its values of and commitment to fair trade, multilateralism, and rules-based international order.

We look forward to the EU's clear-cut compliance with its WTO obligations and apply equal terms to China in its calculations of anti-dumping duties.

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