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Switzerland Recognizes China's Market Economy
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Switzerland has recognized the market economy status of China and hopes to start talks on a free trade area (FTA) with the country.

 

Minister of Commerce Bo Xilai and visiting Swiss Federal Councilor and head of the Federal Department of Economic Affairs Doris Leuthard signed an agreement on Sunday on the full market economy status.

 

They also agreed that the two countries will start a feasibility study on an FTA.

 

Switzerland is the third European nation to recognize the market economy status of China following Iceland and Norway; and the second in Europe to show interest in an FTA after Iceland.

 

Bo said the recognition of market status reflects Switzerland's objective and fair attitude to China's economic progress and creates a solid foundation for full-scale trade and economic relations.

 

"We were convinced China will achieve the goal of open trade by further opening the market, and we want to give support to the Chinese government with this positive sign," Leuthard told China Daily.

 

In the first five months, bilateral trade grew by 30 percent to US$3.28 billion. Switzerland is the nation's 11th largest trade partner in Europe while China is Switzerland's second-largest trade partner in Asia.

 

Since China is not regarded a market economy by many countries -- only 75 do so -- domestic companies are usually compared with firms in other countries for prices, which usually leads to unfair anti-dumping charges.

 

From 1999 to 2006, China faced 536 anti-dumping charges, the highest in the world.

 

China has begun to implement FTAs with the Association of Southeast Asian Nations, Chile and Pakistan, and is talking with 10 countries including Australia and Iceland. It is working on feasibility studies with India, South Korea and Peru.

 

(China Daily July 10, 2007)

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