“The US’s attitude to China being a Market Economy” Janey Cheng

Content 1. What is Market Economy Status (MES)? 市場經濟地位是什麼 ? 2. Why does China fight so hard to gain MES from countries? 為什麼中國積極向其他國家爭取市場經濟地位 ? 3. Why US does not grant a MES to China? 美國為何不給予中國市場經濟地位 ? 4. How can China claim as a market economy? 中國怎樣證明其市場經濟 ? 5. Which countries recognize China’s full MES? 有那些國家承認中國市場經濟地位 ? 6. Prediction on China 對中國的預測

1.What is Market Economy Status (MES)? 市場經濟地位是什麼 ? Under the Hawley-Smoot Tariff Act of 1930 (i) currency convertibility 貨幣的可兌換性 (ii) wage rate determination 薪資釐定 (iii) freedom of foreign investment 外商投資的自由度

(ix) government ownership of production 政府對生產之擁有權 (x) government control of enterprises 政府對商家之操縱 (xi) other appropriate factors 其他相關因素 1.What is Market Economy Status (MES)? 市場經濟地位是什麼 ?

2. Why does China fight so hard to gain MES from countries? 為什麼中國積極向其他國家爭取市場經濟地位 ? The "Protocol on the Accession of the China to the WTO" - WTO Members to treat China as a non-market economy (NME) till 世貿會員可當中國是非市場經濟直至 2016

NME methodology in anti-dumping investigation of Chinese export products 對中國出口貨品進行非市場經濟論的反傾銷調查 Surrogate countries, likes Singapore 代理國家, 像新加坡 unreasonable dumping tax rate 不合理的傾銷稅 2. Why does China fight so hard to gain MES from countries? 為什麼中國積極向其他國家爭取市場經濟地位 ?

Political 政治因素 1. Election of President and Congressmen 美國總統選舉及國會議員選舉 --- complaints from local industries and labor unions 3. Why US does not grant a MES to China? 美國為何不給予中國市場經濟地位

Economical 經濟因素 1. Protection of local industry and labor force 保護美國本土工業及勞工 2. Severe Trade deficit 嚴重貿易赤字 3. Why US does not grant a MES to China? 美國為何不給予中國市場經濟地位

US and China import and export data Merchandise trade by region, China (Billion dollars) Total Export Export to United States Total Import Import from United States Merchandise trade by region, United States (Billion dollars) Total Export Export to China Total Import Import from China Notes: Data from WTO trade statistic

4. How can China claim as a market economy? 中國怎樣證明其市場經濟 ? 1. China carried out economic reforms 27 years ago 中國實行經濟改革 27 年了 2. “The Report on the Development of China's Market Economy 2005” 世界經濟自由度 2005 年度報告書

4. How can China claim as a market economy? 中國怎樣證明其市場經濟 ? 3. About 42 countries or cities in the world like Hong Kong and Switzerland floating the exchange rates within a specific band 全世界約有 42 個國家或城市好像香港及瑞士的匯率都是 浮動在特定的界限裡 4. Russia, late reformer, granted MES by US and EU 俄羅斯, 遲改革者, 被美國及歐盟承認其市場經濟地位

Summary Economic Freedom Ratings, 2003

5.Which countries recognize China’s full market economy status? 有那些國家承認中國市場經濟地位 ? 43 countries,up to Nov 直至 20/11/2005, 共有 43 個國家 Examples: South Korea 南韓, South Africa 南 非, Venezuela 委內瑞拉, Argentina 阿根廷, Brazil 巴西, Israel 以色列, Congo 剛果, Russia 俄羅斯, Pakistan 巴基斯坦, Chile 智利, Peru 祕魯,Iceland 冰島, New Zealand 紐西蘭 ……

ASEAN and all its member states in 4/9/2004 ASEAN 東盟及其會員在 4/9/04 宣佈 5.Which countries recognize China’s full market economy status? 有那些國家承認中國市場經濟地位 ?

Prediction on China 對中國的預測 China’s MES will be recognized by US, but still to wait 美國 將 會承認中國市場經濟地位, 但仍然要等 China will do better in all aspects 中國將會在多方面做得更好