The European Commission is prepared to recognize the Peoples Republic of China market economy, but will strengthen the protection of its branches

The European Commission is developing a plan that will allow China to get into international trade disputes same status that are developed countries, and this will strengthen the protection of European industry against unfair trade practices, writes The Wall Street Journal.
Beijing insists that the agreement on accession to the World Trade Organization (WTO), signed in 2001, requires the European Commission's recognition of China's status as a market economy, to December 11, 2016.
This will limit the freedom of action of the EC to protect the industry from Chinese imports, the cost of which is often lower than the market.
The representatives of the European industry noted that China is using state subsidies to boost exports, undermining thus the foreign competition. China's economy is still controlled by the state, and European governments need to take this into account when discussing whether or not to accept the China market economy, experts say.
The EC intends to find a compromise that will resolve the doubt industry and skeptical of the EU countries, while giving it the opportunity to comply with international legal obligations.
Developing a plan involves the introduction of high duties on imports, the value of which is lower than the level of the international market, as well as accelerate the launch of anti-dumping procedures, the European Commission said on Wednesday.
The question is "how to adapt our scope of protection of trade instruments to cope with the reality of overproduction, as well as changes in the international legal framework," said EC deputy chairman Jyrki Katainen, responsible for economic growth and investment.
 The European Commission intends to formally present the new plan later this year. This plan requires the approval of the European Parliament and EU states. The EU countries, however, are divided on this issue. Thus, the southern European countries, such as Italy, require a tougher approach to China, while the Scandinavian countries are more inclined to support the approval of China's status as a market economy.
The Nordic countries are of the opinion that such a move would open the door for increased Chinese investment in the euro-zone economy, which is in a state of stagnation. This, in their opinion, support investments in infrastructure and the labor market.