EU rejects China market status

The European Union refused a request to grant China "Market Economy Status" (MES) saying the state remained too heavily involved in industry. In its report on the issue, the European Commission said a lack of adequate accounting, property and bankruptcy laws meant China would have to remain classified as a "transitional economy". China has been lobbying hard to get MES, which would make it harder for other countries to impose anti-dumping penalties on its exports. To date New Zealand, Singapore and Malaysia have recognized China as a market economy, with Australia considering following suit.