The US refuses to recognize China as a market economy. China's exports to the United States in the first three quarters increased 18.7 per cent over the same period of 2016, and China’s trade surplus with the United States in the first 10 months expanded 7.3 per cent to reach $225 billion. The robust growth in China’s exports to the United States and the appreciable trade surplus could be a catalyst for the US to maintain a tough stance on China.

Such behavior is reminiscent of the domestic laws of certain WTO members in the Cold War era, and the refusal would put trade ties with China at risk. On the other hand, China has established and continuously improved its market economy system, which has earned worldwide recognition. So far, more than 80 economies have recognized China as a market economy.

So the US opposition to recognizing China as a market economy within the framework of the World Trade Organization is in disregard of the relevant WTO rules. The United States has tried to mix the concepts of the surrogate country approach and market economy status. But the case is about surrogate country approach, not market economy status, which means the former is within multilateral trade rules, while the latter is regarded as a domestic law issue.