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Study: China already a market economy
(CRIENGLISH.com)
Updated: 2005-08-19 11:24

A recent study on China's market economy development shows the country's marketization level has reached 73 percent.

Experts say it's unfair the United States and the European Union don't grant China a full market economy status.

The Report on the Development of China's Market Economy 2005', which is released by economists in the Beijing Normal University, touches on many fields the United States and the EU consider important for establishing a market economy.

It says China's marketization level has reached 73.8 percent in 2003, already exceeding the market economy 'critical level' of 60 percent.

Doctor Zeng Xuewen, one of the report's authors, says the report uses the market economy criteria adopted by Europe and the US in anti-dumping and international Economic Freedom Index as part of the analysis.

He explains there are five common standards to evaluate a market economy, and according to the standards, the marketization level of China's economy is getting higher and higher.

"The government size is shrinking with more standardization; the economy entities are having more freedom; the marketization level of such elements as labor capital is increasing; the trade environment is improving and the financial parameter including interest rate and exchange rate is more reasonable," said Zeng.

Although study shows China has already been a market economy, the United States and the European Union still refused to grant the country a "market economy" status, a remedy for avoiding western anti-dumping investigations.

Zeng Xuewen says these countries have been doing this out of their own interests.

"Because China's export is skyrocketing these years and its major markets are in the United States and Europe. Not granting China the market economy status is a way to refrain China's export volume and economy development," Zeng said.

So far more than 40 countries have acknowledged China's market economy status.

However, Doctor Zeng Xuewen also points out that many more areas need to be improved.

Because some governments still hold a tight grip on their local economies, the enforcement of laws cannot be fully performed and there is imbalanced development in different industries and regions.

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