10 February 2016
While factories are closing daily across Europe, the European Commission is now openly talking of surrendering Market Economy Status (MES) to China, which would leave Europe defenceless against a flood of Chinese imports that would wipe out European jobs and growth. Up to 3.5 million EU jobs are at risk and €228 billion in annual GDP could be lost. Today almost 22 million people are unemployed in the EU – Europe can ill afford to lose more jobs.
Free and fair international trade depends on a level playing field between EU and Chinese producers based on genuine competitive advantages. Dumping, however, distorts free trade and occurs when a Chinese company sells a product abroad below the real costs of production and transport. Dumping from China has resulted in the exporting of unemployment to the rest of the world through it state-run five year economic growth plans.
The People’s Republic of China has disregarded international trade rules by building up overcapacity in strategic industries through illegal subsidies and then dumping artificially cheap products abroad, hitting European factories and jobs.
Granting China MES is an unlimited license to dump, destroying millions of jobs in key sectors. Today the EU discussion is focused on China’s destructive dumping of steel, solar panels, ceramic and glass fibre, among others. If the EU surrenders MES to China, we would quickly face unfair trade in automotive, mechanical engineering, advanced materials, telecommunications, energy technology and many other strategic European industries.