CAIRO: China s demands for a testimony from Egypt that the Asian giant has a fully free market economy have fueled widespread controversy among Egyptian businesspeople and business groups.
Head of the Egyptian Federation of Industries Galal Al-Zorba called on the government to reject these demands on the background of Chinese unfair competition and dumping practices against local producers. Meanwhile, the head of Egyptian Federation of Commerce Chambers, Khaled Abu Ismaeil, said the government may grant China this testimony only in return for the highest possible package of economic privileges.
China s move to obtain such testimonies from Egypt and other countries is intended to help the country s efforts to obtain full membership in the World Trade Organization or prevent the multilateral organization from taking retaliatory measures against the Asian giant s non-observance of international free trade rules. China has a record of dumping practices in several markets worldwide.
Al-Zorba pointed out that Egypt should reject China s demands, especially as the Chinese currency has been fixed at 30 percent lower than its real value and the government of China has allocated large subsidies to the country s exports. He added that economic conditions in China were also inconsistent with free market economy.
Nevertheless, Abu Ismaeil said it would be better to grant China the testimony in return for trade and economic advantages for Egypt.
China s head of State Council Wen Jiabao started a visit to Egypt Sunday to enhance relations between Cairo and Beijing. Noozz
