The demand for status of Market Economy from the World Trade Organization is being sought by China. China's main objective behind this is to promote its business. Also, if China achieves the status of market economy, the country importing its goods will not be able to charge anti-dumping duty on its goods. In other words, if China's goods are imported by India, India cannot afford anti-dumping duty on goods of China. It is known that Anti Dumping Duty is used to protect the market of its own from imports from other countries.
What do you mean by market economy?
- Market economy refers to an economy in which prices are fixed on the basis of commodities.
- Thus market economy is driven by market forces and there is minimal intervention of the government in this.
- It is to be noted that in 2001, under the Protocol of Accession of China in the World Trade Organization, China was included in the form of non-market economy for the next 15 years and by 16th year this level would be increased to market economical was said by W.T.O.
What objection is to America and India with China's status as the Economy of China?
- Prices are controlled by China by offering huge subsidies to their goods so that the markets of other countries can be captured. America and India are opposing market economy because of this move of China.
- It is noteworthy that if China is given status of market economy, then it will become more independent to raise such cost control measures.
- Another reason for America's opposition is that if subsidies are continued further by China, then there may be a negative impact on US industries and employment in the US can be reduced.
- Above all, America does not want China to have a monopoly in the global economy.
- Similarly, India is against giving China the status of market economy because after achieving this status India cannot afford anti-dumping duty on China's goods.
- At the same time, there will be more growth in India's trade deficit with China, which has already become worrisome.
Conclusion:
In conclusion, it can be said that granting China's market economy status will strengthen its business monopoly full attitude. At the same time, along with the US, the economy like India will also suffer loss.
