The European Parliament voted in favour of new rules to determine the value of goods coming from economies, like Vietnam or China, that suffer from significant distortions. In anti-dumping investigations, the level of the dumping is the comparison between the normal value in the country of origin of the goods and the export price to the EU.
China has argued that it can no longer be classified as a non-market economy. The EU did not consider that China could be classified as a market economy given the significant distortions present in the market. So as a compromise the EU agreed to change its anti-dumping law so as to stop classifying countries as either market or non-market and instead to focus on the extent to which the market could give reliable price signals determining a correct market based value.
The new rules are expected to be adopted by the Council in the course of November and come into force on 20 December. At that time the Commission will publish a 400 page report into distortions in the Chinese economy that will facilitate EU industry making complaints about dumping from China.