(cnhubei.cm) European Union (EU) has recognized market economy status of Hubei Jingshan Chutian Barium Salt Co. Ltd, a breakthrough in central China’s Hubei Proivnce.
Chutian Barium Salt Co. received anti-dumping investigation from EU Trade Commission in April.
The company made quick response to the investigation and employed experienced lawyers to provide legal service.
Officials from EU Trade Commission came to Jingshan for the investigation in June.
They announced its recognition of thr company’s market economy status recently, the first in Hubei.
According to information from People’s Daily Online, a Chinese official said that in terms of trade dispute, whether a country is a market economic status depends on whether market plays a fundamental role in the resource allocation. This is only the standard of rule. Moreover standard of action examines whether enterprises are acting normally in competition. Another indicator is the standard of performance.
Background Information
Standards referred by EU when judging a country’s market economy status
1. Decisions of firms regarding costs, prices and inputs, including for instance raw materials, cost of technology and labor, output, sales and investment are made in response to market signals reflecting supply and demand and without significant State interference in this regard, and costs of major inputs substantially reflect market values;
2. Firms have one set of clearly audited accounting records which are independently audited in accordance with international accounting standards and are applied for all purposes;
3. The production costs and financial situation of firms are not subject to significant distortions carried over from the former non-market economy system, in particular in relation to depreciation of assets, other write-offs, barter trade and payment via compensation of debts;
4. The firms concerned are subject to bankruptcy and property law which guarantee legal certainty and stability for the operation of the firms, and
5. Exchange rate conversions are carried out at the market rate.
Source: Ministry of Commerce
