A coalition of EU and business groups on April 13, 2026, called for a merit-based review of China's market economy status, warning that granting it automatically could undermine EU trade defence instruments. In a joint statement, the groups argued that China's continued state intervention and overcapacity in key sectors justify maintaining stricter anti-dumping and anti-subsidy measures.
The appeal follows a busy period for EU trade policy. On April 12, 2026, the European Commission published a policy paper urging coordinated pharmaceutical stockpiling and market reforms, highlighting supply security concerns that echo the business groups' emphasis on protecting European industry from unfair competition. The same day, Medicines for Europe called for EU-wide procurement criteria beyond price to ensure supply security, reflecting broader anxieties about dependency on non-EU suppliers.
The business groups' statement also comes amid ongoing EU regulatory developments. On April 8, 2026, the European Medicines Agency proposed stricter veterinary medicine disposal rules and enhanced safety monitoring, part of a wider push to tighten environmental and health standards that could affect trade partners. The groups' call for a merit-based review aligns with earlier positions from industry associations like Medicines for Europe, which on April 12 proposed patent reforms to curb divisional patent abuse, arguing that originator companies use such tactics to delay generic competition—a concern that parallels the trade defence issues raised regarding China.
The EU has been debating China's market economy status since 2016, when the World Trade Organization protocol expired. The business groups now urge the Commission to assess China's compliance with market economy criteria before any change, warning that automatic recognition would weaken the EU's ability to counter state-subsidised exports and protect domestic industries.
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