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MFA Spokesperson Lu Kang's Remarks on a proposal of EU introducing changes to the EU's anti-dumping legislation in order to conform with the obligations provided for in Article 15 of the Protocol on China's Accession to the WTO
2016/11/13

Q: On November 9, the European Commission presented to the European Parliament and European Council a proposal introducing changes to the EU's anti-dumping legislation in order to conform with the obligations provided for in Article 15 of the Protocol on China's Accession to the WTO. What is you comment?

A: We have taken note of this with concerns.

China's position has been clear and consistent when it comes to the implementation of Article 15, that is, the use of "surrogate country" approach in anti-dumping investigations against China shall end along with the 15-year transitional period. It is what WTO member states must do in accordance with international treaties.

China acknowledges the EU Commission's proposal of removing the list of non-market economy countries, which reflects the EU's willingness to fulfill Article 15. Much to our regret, however, the new methodology proposed by the EU which replaces the concept of "non-market economy" with "market distortions", fails to uproot the practice of "surrogate country", but only gives it a new cover. That is neither a thorough implementation of Article 15 nor a compliance with WTO rules.

Let me emphasize China's principled position in three points. First, the EU must fulfill its obligations in a comprehensive manner, the sunset provisions of Article 15 shall come into full effect and the "surrogate country"practice shall be terminated in its entirety. Second, new standards and methods shall be scientific, fair, reasonable and transparent, and new forms of discrimination must be avoided. Third, the practice of "surrogate country" shall not continue in whatever name once it is expired and shall be replaced with the general anti-dumping method in strict accordance with WTO rules. I would like to emphasize that China will retain the right to take all necessary means to safeguard its legitimate rights and interests.

As a pillar of the WTO, the EU has always stood for the multilateral trading system and global trade liberalization. It is hoped that the EU will honor its commitment and fulfill its obligations comprehensively and thoroughly as scheduled, safeguard the order of international trade and the overall interests of China-EU economic and trade relations.

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