U.S Representative: Congress Must Have Say In China Market Economy Status

According to Politico’s “Morning Trade,” Rep. Rosa DeLauro (D-CT) introduced legislation last week that would require Congress to approve or reject the U.S. Commerce Department's potential recognition of China as a market economy. 

China has argued that, under its World Trade Organization (WTO) accession agreement, it should be considered a market economy after Dec. 11, 2016. Rep. DeLauro said, “Across our economy, American businesses are in crisis under the weight of billions of government-subsidized Chinese exports. Meanwhile, American companies attempting to do business in China have faced severely unfair treatment by the Chinese government.” Her legislation would require Congress to act within 45 days of a Commerce Department decision on this matter. 

As a reminder, MSCI recently joined a coalition, Manufacturers for Trade Enforcement, that argues the U.S. government can and should continue to apply its right to assess the non-market aspects of China’s economy that are relevant to any U.S. trade enforcement action. Click here to learn more about that coalition and click here to read about a poll conducted on behalf of its members. 

Rep. DeLauro’s bill is called the China Market Economy Status Congressional Review Act.