China files a legal claim against the US and Europe at the WTO - Rabobank

According to the Bas van Geffen, Quantitative Analyst at Rabobank, in what is perhaps a pre-emptive strike, China filed a legal claim against the US and Europe at the World Trade Organization, the FT reports today.

Key Quotes

“The country is not amused about the fact that it is still not being recognized as a ‘market economy’ by its trade partners, which allows the US and Europe to add extra tariffs on some of China’s export products. China had hoped that these punitive tariffs would expire now that the country has been a member of the WTO for 15 years.”

“The United States have already indicated that it will oppose granting China ‘market economy’ status, since “China has not made the reforms necessary to operate on market principles”. Such a hardline stance from the US is only going to increase next year, after President-elect Trump takes up residence in the White House. This is one factor that informs our bearish view on China and the broader global impact of recent developments in US politics.”