Textile manufacturers in the US have urged the Obama administration not to grant China, market economy status stating that Beijing's trade practices especially in the textile supply chain, invariably leads to dumping of goods in other countries.
As per Augustine Tantillo, President and CEO of The National Council of Textile Organizations (NCTO), China's chronic misallocation of investment to expand its state-owned enterprises in the textile supply chain and in other industrial sectors where there is an excess of global capacity, invariably leads to Chinese dumping and other non-free-market economic practices.
These actions that hurt the global economy must not be rewarded by the United States, Tantillo cautioned citing reports that even the WTO had commented that China's market reforms, since joining the WTO, have fallen short of expectations.
At present, the U.S. Commerce Department treats China as a non-market economy when calculating anti-dumping margins and other trade remedies. Interestingly, China is seeking a formal designation as a market economy from December 11 this year that happens to be the 15th anniversary of the country's accession to WTO.
