Yesterday, I testified before the U.S.-China Economic and Security Review Commission (USCESRC), participating in the panel entitled “Evaluation of China’s Nonmarket Economy Status.” In the panel, I discussed that whether you look at criteria in United States, European Union, or Canadian law—and each government’s approach to China as a major trading partner—China is not a market economy.

In response to China’s claim that it must be treated as a market economy in antidumping investigations after December 11, 2016, China’s interpretation of the relevant provisions of its Protocol of Accession to the World Trade Organization was erroneous. This claim [by China] is unsupported by the actual language of the Protocol and is contrary to the underlying purpose of the relevant provision of the Protocol.

Treating China as a market economy when it is not one would have a severely negative impact on the U.S. economy. It would give China a strong and unearned advantage in international trade. It would remove a major incentive for China to implement market-based reforms, and allow it to ignore the commitments it made in its Protocol of Accession to allow prices to be set by market forces.

To read the written statement from the hearing, please click here.