Chinese delegates discuss market economy status at EU-China Summit

CCTV News

Chinese delegates discuss market economy status at EU-China Summit

On July 11, European Union and Chinese leaders will meet in Beijing for the EU-China Summit and the two sides will again be talking trade. Their agenda will include China’s wish for Europe to grant it what’s known as “Market Economy Status.”

CCTV’s Kevin Ozebek reports on how the EU looks less likely then ever to expand trade with China.

Chinese delegates discuss market economy status at EU-China Summit

Chinese delegates discuss market economy status at EU-China Summit

On July 11, European Union and Chinese leaders will meet in Beijing for the EU-China Summit and the two sides will again be talking trade. Their agenda will include China’s wish for Europe to grant it what’s known as “Market Economy Status.” CCTV’s Kevin Ozebek reports on how the EU looks less likely then ever to expand trade with China.

If the European Union gives China Market Economy Status, or MES, Chinese manufactures will see a slash in trade taxes.

Analyst said cheaper Chinese imports mean European consumers will save money. But others believe flooding Europe with less expensive Chinese goods could kill some European industries.

Europe’s steel industry is especially worried about being wiped out by a wave of cheap Chinese imports.

“It would destroy jobs that are good quality jobs that we would like to see more of these manufacturers jobs in Europe and the experience is these jobs go and what is created are less good jobs,” Jan Drahokoupil at European Trade Union Institute said.

The other argument though is giving China MES would send a surge of growth into Europe’s digital sector.

But in a post Brexit referendum Europe-MES is a tough sell.

Many of the votes cast in the U.K. to leave the EU came from those who think free trade and globalization have cut their wealth.

Right now, Europe is not focused on free trade.

The EU has until December to figure out if it will grant China MES. But back in May, the European Parliament voted 546 to 28 not to give China MES.