South Korea grants China market economy status
(Reuters)
Updated: 2005-11-16 16:56

Chinese President Hu Jintao said on Wednesday that South Korea had granted Beijing market economy status, a move that will give China greater protection from anti-dumping duties on its exports.

Argentina and Brazil both recognised China, one of the world's top trading nations, as a market economy last year but the European Union said as recently as this month that it was not yet in a position to give a target date for awarding the label.

"South Korea agreed to grant China a market economy status," Hu told a joint news conference in Seoul with South Korean President Roh Moo-hyun.

Under the terms of China's 2001 accession to the World Trade Organisation, members of the trade body can treat China as a "non-market economy" until 2016. This allows them to use production costs in other countries to evaluate whether Chinese imports are "dumped", or unfairly priced.

Beijing says this means it receives higher anti-dumping duties than if Chinese costs were used in the evaluation.