China's market economy status

This procedure examines whether China should be granted 'market economy status' within the European Union's trade framework. This status determines how the EU calculates prices and costs when investigating claims of unfair trade practices, such as dumping, to decide if protective tariffs are necessary.

This affects exporters and importers of Chinese goods and EU industries that compete with Chinese products. It changes the methodology used in trade defense investigations to ensure fair competition in the internal market.