European grant of MES to China is long overdue
- By Sumantra Maitra
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E-mail China.org.cn, February 17, 2016
China's Ambassador to the EU Yang Yanyi was even more forthcoming in her views. "The truth is China is making really good news stories. Yet, unfortunately and regrettably China has been a victim of 'bad stories'," she said. While the structural differences between China and EU cannot be denied, "China and the EU, sharing such objectives as transforming growth models, accelerating structural adjustment, raising the quality and returns of growth, promoting employment as well as improving people's well-being, will continue the endeavor to enrich and upgrade their cooperation and open up broader prospects for a win-win relationship."
The opposition to granting MES to China is baseless and detrimental to the overall interests of the European Union. First of all, China has agreed to follow and has, indeed, followed all the rules of the WTO since its accession. It has met all its legal obligations, and so is entitled to all WTO privileges. Also, this fear about China taking over European markets is primarily fuelled by paranoia, as EU production has moved from traditional manufacturing to services.
A Stratfor report suggests the European steel lobby and the United States are really behind the opposition. Now, as Europe needs to choose sides, it is interesting to see the big heavyweights favor China.
To start with Britain: other than the British steel industry, with an ever-diminishing workforce, the U.K. is all supportive of granting market status to China; similarly with Germany, which also has a steel industry in decline. Britain and Germany have massive financial ties with China, based on London and Frankfurt, and the financial lobby is much larger than the steel sector and will possibly override any opposition.
France is increasingly looking to China as the biggest trading partner, and will understandably take the Chinese side on this issue, as will the Scandinavian countries, which are traditionally against protectionist policies, and which will benefit from Chinese goods in the EU market, providing more choice to the consumers.
It is understandable that Italy and other Southern European countries might oppose China's status as a market economy, but, as they say, you cannot stem the market tide, and if the market decides in favor of China.
Hence, by November, we will possibly see China being granted MES, which is long overdue.
Sumantra Maitra is a columnist with China.org.cn. For more information please visit:
http://www.china.org.cn/opinion/SumantraMaitra.htm
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