China loses WTO dispute to EU over market economy status . China subsidize its manufacturing companies to reduce market price . As the Chinese economy is socialist one govt. can provide direct subsidy to reduce cost of production. Taking this opportunity Chinese players sell their product at a lower price than its cost production in the whole world. It hampers industry all over the world , like India all most all the small scale industries are collapsed by Chinese players. China vs EU According to the EU, China subsidises its industries to a great extent, particularly steel and aluminum, making their sales prices in the international market unfair. After the latest development, to protect their industries, the EU and the United States will be able to apply high anti-dumping tariffs on goods from China. Same problem is faced by India also, because of china’s dumping policy Indian market is dominated by Chinese players. Now it is the golden opportunity for India