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          Criteria of Market Economy

          (china.org)
          Updated: 2006-10-09 16:11

          I. Criteria of Market Economy as Defined by Relevant Antidumping Laws of the USA, the EU and Canada

          "Non--Market Economy Countries" as referred to by the US Department of Commerce are countries whose operation does not follow market costs or price rules. The department sets six statutory requirements [19U. S. C -- 1677(18)] or specific criteria with regard to a market economy:

          (1) the extent to which the currency of the foreign country is convertible into the currency of other countries;

          (2) the extent to which wage rates in the foreign country are determined by free bargaining between labor and management;

          (3) the extent to which joint ventures or other investments by firms of other foreign countries are permitted in the foreign country;

          (4) the extent of government ownership or control Of the means of production;

          (5) the extent of government control over the allocation of resources and over the price and output decisions of enterprises, requesting that decisions concerning the output and prices of an industry are free of government intervention and that all important product inputs are paid at market prices;

          (6) such other factors as the administrating authority considers appropriate.

          In addition, the US Department of Commerce is particularly concerned with the export control by the exporting countries: on the one hand, if there is any control by the government with regard to enterprises' export activities by law.


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