Amid the armed border clash between two armies, India has rejected its deemed support to grant China Market economy status. After the death of around 20 Indian soldiers in the border dispute, New Delhi has denied giving a market economy tag to China and continue to consider it as a non-market economy that entitles India to impose anti-dumping duties on imports from its neighbor.
The term non-market economy is used for the country that has a complete monopoly of its trade, and the state decides all domestic prices.
The members of the World Trade Organization are allowed to impose steep anti-dumping duties on foreign companies export if the product is exported at a low price compared to its home country and if the imported product negatively impacts the local industries.
China had initially joined WTO in 2001 with an agreement with its member than it will be treated as a non-market economy by other members for anti-dumping proceedings. The 15 years period ended in December 2016, considering the current situation in China and Chinese government control on the domestic trade and price control on export commodities. European Union and America desisted from giving China the market economy status.
While China has insisted on India to fulfill its obligation to WTO and recognize China as a market economy, India has denied citing that Chinese exporters failed to show relevant information that proves China is eligible to get the tag of Market Economy. Despite the dispute between both the nations, China remains one of the largest exporters to India and a significant trade partner.
Prior to joining Get Ignite, Florence had a hand in a number of online and print publications, including InternetNews.com as chief copy editor and Government Technology Magazine as managing editor. She also did a stint in Sydney as group editor of RBI Australia’s manufacturing group, which is when she also developed an affinity (a love, really) for tennis.