CSUSTL Welcomes Commerce Department’s Confirmation of China’s Non-Market Economy Status
(Washington, DC, October 31, 2017) – The Committee to Support U.S. Trade Laws (CSUSTL) welcomes and applauds the determination issued by the U.S. Department of Commerce (DOC) that China’s economy should continue to be properly treated as a “Non-Market Economy” (NME) for purposes of calculating antidumping margins. The determination comes in the context of a trade remedy case against China alleging dumping and subsidization of aluminum foil exports to the United States.
“Commerce’s findings comport exactly with everything we know about the Chinese economy from ongoing study by USTR, DOC, international financial institutions, published research and just day-to-day observation of what lies behind most major economic decisions made by China,” said CSUSTL President Thomas M. Sneeringer, adding, “it certainly is not analysis of market forces and has led to massive excess capacity and global economic distortion in many sectors.”
“The DOC report finding that China continues to be an NME under the U.S. statute is extremely well documented,” said Roger Schagrin (Schagrin Associates), Chairman of CSUSTL’s Executive Committee. “It demonstrates beyond any doubt that the Government of China continues to orchestrate the Chinese economy. The results of the recent Party Congress show that China is more committed than ever to its state-owned enterprises in major industries. This is why it is important that the rest of the world that adheres to market-based principles take appropriate action necessary to prevent closures and bankruptcies of their own manufacturers in the face of this unfair competition by the Chinese government. “
Terence Stewart (Stewart and Stewart), a former President of CSUSTL, noted, “We appreciate the thorough review that Commerce has undertaken on this important issue affecting U.S. competitiveness. The extraordinary outpouring of factual information from the public on the continued substantial distortions that characterize the Chinese state strongly supports the conclusions reached by the Commerce Department based on its lengthy analysis. U.S. companies and their workers deserve an effective remedy to address market distortions. Until China fully addresses the many distortions in its economic system, China cannot be treated as a market economy. Friday’s finding is critical to our market economy, ensuring tools exist to address the unfair trade practices of the world’s largest exporter.”
The Committee to Support U.S. Trade Laws (“CSUSTL”) is an organization of companies, trade associations, labor unions, law firms, and individuals committed to preserving and enhancing U.S. trade laws and supporting trade policies that benefit the United States-based productive economy. CSUSTL’s members span multiple sectors, including manufacturing, technology, agriculture, mining, energy, and services. We are dedicated to ensuring that the laws against unfair trade are not weakened through legislation or policy decisions in Washington, DC, in international negotiations, or through dispute settlement at the World Trade Organization (WTO) and elsewhere.