Argentina recognises China as a ‘market economy’

Chi­na is pro­gres­sive­ly under­min­ing the penal­ty pro­vi­sions of its WTO pro­to­col of acces­sion that allow oth­er coun­tries to use prej­u­di­cial anti-dump­ing rules on imports from Chi­na. It’s time for Aus­tralia to offer the same recog­ni­tion to our num­ber three trad­ing part­ner bq. The deci­sion fol­lows a two-day vis­it to Buenos Aires by Hu Jin­tao, China’s pres­i­dent, in which the two coun­tries signed let­ters of intent that could lead Chi­nese com­pa­nies to invest near­ly $20bn (€15bn, £11bn) in Argenti­na over the next decade. Chile, the host of this year’s Asia Pacif­ic Eco­nom­ic Co-oper­a­tion (Apec) sum­mit, is wide­ly expect­ed to fol­low Argenti­na. Brazil grant­ed Chi­na mar­ket-econ­o­my sta­tus last Fri­day. (“Finan­cial Times”:http://news.ft.com/cms/s/7d28587e-39bf-11d9-b822-00000e2511c8.html) The penal­ty dump­ing pro­vi­sions, insert­ed by the USA and EU in the agree­ment that let Chi­na into the WTO have noth­ing to do, in fact, with an assess­ment of whether Chi­na is a mar­ket econ­o­my.  The tag is pure mar­ket­ing. But there’s plen­ty of evi­dence that Chi­na is becom­ing a more mar­ket-dri­ven econ­o­my every day. Take “this”:http://news.ft.com/cms/s/548f8a5e-399c-11d9-b822-00000e2511c8.html report fromt the Finan­cial Times (sub) today, about China’s deci­sion to start using inter­est rate con­trols instead of ‘admin­is­tra­tive guid­ance’ in set­ting con­trols on the growth of cred­it sup­ply through the banks.

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