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    Commission Implementing Regulation (EU) 2019/1662 of 1 October 2019 imposing a de... (32019R1662)
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    EU - Rechtsakte: 11 External relations
    (96) The Commission noted that the distortions described in the Report are characteristic for the Chinese economy. The evidence available shows that the facts and features of the Chinese system as described above in Sections 3.2.2.2-3.2.2.5 as well as in Part A of the Report apply throughout the country and across the sectors of the economy. The same holds true for the description of the factors of production as set out above in Sections 3.2.2.6-3.2.2.8 above and in Part B of the Report.
    (97) The Commission recalls that in order to produce ironing boards, a broad range of inputs is needed. When the producers of ironing boards purchase/contract these inputs the prices they pay (and which are recorded as their costs) are clearly exposed to the same systemic distortions mentioned before. For instance, suppliers of inputs employ labour that is subject to the distortions. They may borrow money that is subject to the distortions on the financial sector/capital allocation. In addition, they are subject to the planning system which applies across all levels of government and sectors. Again, the present investigation did not yield evidence pointing to the contrary.
    (98) As a consequence, not only the domestic sales prices of the product under review cannot be used but all the input costs (including raw materials, energy, land, financing, labour, etc.) are also tainted because their price formation is affected by substantial government intervention, as described in Parts A and B of the Report. Indeed, the government interventions described in relation to the allocation of capital, land, labour, energy and raw materials are present throughout the PRC. This means, for instance, that an input that in itself was produced in China by combining a range of factors of production is exposed to significant distortions. The same applies for the input to the input and so forth.

    3.2.2.10.   

    Conclusion

    (99) The analysis laid out in sections 3.2.2.2 to 3.2.2.9, which includes an examination of all the available evidence relating to China’s intervention in its economy in general as well as in the ironing board manufacturing sector (including the product under review) showed that prices or costs, including the costs of raw materials, energy and labour, are not the result of free market forces because they are affected by substantial government intervention within the meaning of Article 2(6a)(b) of the basic Regulation as shown by the actual or potential impact of one or more of the relevant elements listed therein. On that basis, and in the absence of any cooperation from the GOC, the Commission concluded that it is not appropriate to use domestic prices and costs to establish normal value in this case.
    (100) Consequently, the Commission proceeded to construct the normal value exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks, that is, in this case, on the basis of corresponding costs of production and sale in an appropriate representative country, in accordance with Article 2(6a)(a) of the basic Regulation, as discussed in the following section.

    3.2.3.   

    Representative country

    3.2.3.1.   

    Analysis of criteria

    (101) The choice of the representative country was based on the following criteria:
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