Distinguishing China's Non-Market Economy Status

Following China's accession to the WTO, the number of antidumping investigations initiated involving Chinese products, instead of decreasing, has risen rapidly. One of the key grounds relied upon by the initiating countries is the China's being characterized as a"Non-Market Economy Country (NMC)", which are among the biggest obstacles to the development of China's foreign trade. In fact, a market economy system has already taken shape in China thanks to over two decades of reform and opening-up. It is the market-oriented reform brings the prosperous to market economy. But why some of our main trade partners, such as the U.S.A and the E.U, still consider China as a NMC? Which difficults are we facing when marketing? To what extent has the marketization developed now? Whether or not are we Market Economy Country? Effort has been taken to analyzing and solving the above problems in this paper.This paper divided into five parts altogether, aims to analyze China's NMC by testing the degree of our marketization. Chapter One tells the origin of NME and analyzes NMC's negative impact on China's economic growth, employment Situation and the environment of trading. Chapter Two and Three reviewed large amounts of research and study, drew upon various methods of research and calculation from both home and abroad. After telling the conception and character of marketization, and the sense of estimation of marketization, we put forward a new index system on this basis. The new index system paid much attention to those factors often neglected before, for example, people's thinking and attitude, norms and orders in the market. When it comes to choosing which method to testing the degree of our marketing, principal components analytic method can make the result more reliable and believable. In Chapter Four, the SPSS was applied to estimate the marketization degree of the whole country. According to this, the degree of China's marketization was 74.63% in 2005,which means that China has been a market economy. Nevertheless, the U.S.A and the E.U. still exclude China from the market economy countries, regardless of China's economy growth.. Because they have to protect their own political and economical interests. From a long-time view, acceleration of our marktization is the fundamental way for acquiring NMC. Meanwhile, government, Industry associations and enterprises have to do their best and attach importance to using of some Strategies and skills.