Written question asked by Denzil Davies (Labour) on Wednesday, 30 June 2004, in the House of Commons. It was due for an answer on Tuesday, 13 July 2004. It was answered by Mike O'Brien (Labour) on Tuesday, 13 July 2004 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what criteria formed the basis of the EU's recent decision that China is not a market economy.

Answer: Denzil Davies: To ask the Secretary of State for Trade and Industry what criteria formed the basis of the EU's recent decision that China is not a market economy. [182170] Mr. Mike O'Brien: The EU's decision was taken exclusively in the context of trade defence investigations, looking at the reliability of costs and prices of Chinese companies. Within this framework, China did not meet four criteria, namely state influence in company affairs, corporate governance particularly compliance with accounting law, equal treatment of all companies under property and bankruptcy law and the independence of the financial sector. China did, however, meet the criterion of absence of compensation systems and the absence of state induced distortions in connection with privatisation.

Secondary information