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20 J. Int'l Trade L. & Pol'y 1 (2021)

handle is hein.journals/jitlp20 and id is 1 raw text is: The current issue and full text archive of this journal is available on Emerald Insight at:
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China's NME status at the WTO:
analysis of the debate
Mirek Tobias Hosman
Alma Mater Studiorum Universitd di Bologna, Bologna, Italy
Abstract
Purpose - Although officially ended in July 2020, China's dispute about its non-market economy (NME)
status at the World Trade Organization (WTO) is far from being resolved. The NME status enables China's
counterparts to disregard Chinese prices in antidumping proceedings and instead use the so-called surrogate
country methodology. This paper aims to structure and analyze the complex debate, which emerged with the
disputes China has filed against the European Union and the USA at the WTO, and therefore provide a point
of reference for future analysis of and debates about China's NME status.
Design/methodology/approach - The analysis is based on the existing academic literature on the topic
and on the legal WTO-related documents (e.g. multilateral agreements, China's Accession Protocol, legal
findings of the WTO dispute panels).
Findings - Four different interpretations of the respective legal documents about China's NME status are
discussed and strong and weak aspects of these interpretations are pointed out. Also, several
misunderstandings and mistakes appearing in the debate are clarified.
Practical implications - As the question of China's position at the WTO and its NME status has not
been resolved yet and some authors believe that China will pursue its case again once the WTO Appellate
Body revives its functionality, the analysis of the debate can serve as a point of reference for the academic
debate and the future research on this topic. Moreover, it offers an introduction to China's NME position at the
WTO for the newcomers to this topic.
Originality/value - Although China's NME status has been much discussed, there is no literature review
that would structure the debate and point out some of the (dis)advantages of the respective arguments and
interpretations. Rather than adding to the large corpus of literature about the NME status, this study takes
this corpus as the object of its analysis.
Keywords WTO, Antidumping, DS516, NME, Non-market economy, Trade dispute mechanism,
EU, USA, China
Paper type Literature review
Introduction
Among the many challenges the World Trade Organization (WTO) is facing right now - be
it the need to quickly find a new Director-General who will replace the early-resigned
Roberto Azevedo, the ongoing trade conflict between the USA and China or the deteriorating
judicial system manifested by the suspension of the Appellate Body functioning - there is
© Mirek Tobids Hosman. Published by Emerald Publishing Limited. This article is published under the
Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and
create derivative works of this article (for both commercial and non-commercial purposes), subject to full
attribution to the original publication and authors. The full terms of this licence may be seen at http://
creativecommons.org/licences/by/4.0/legalcode
The author would like to thank this journal's anonymous referees for their valuable comments.
The author would also like to express his gratitude to Oldrich Krpec and Maria Lucia Boi for their
insight and support.

China's NME
status at the
WTo

Received 20 September 2020
Revised 9 November 2020
5 December 2020
Accepted 6 December 2020

Journal of International Trade
Law and Policy
Vol.20 No. 1,2021
pp. 1-20
EmeraldPublishing Litd
1477-0024
DOI 1&.110&/JITLP-09-2020-0054

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