China’s Transition to a Market Economy Status Nullified by New U.S. Trade Remedies Legislation

Dharmendra N. Choudhary

A fervent debate has been raging about China’s future status after December 11, 2016, when the 15-year transition period stipulated under paragraph 15(a)(ii) of China’s WTO Accession Protocol expired. The issue under contention is whether China would be allowed to graduate from non-market economy (NME) (i.e., where exporters’ production and pricing decisions are presumed to be controlled by the government) to market economy (ME) country (i.e., no government control in production and pricing decisions) status in U.S. antidumping (AD) and countervailing duty (CVD) proceedings.

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