When China joined the WTO in 2001, China accepted a condition that it would be regarded as a non-market economy for 15 years. The non-market economy status hurts China's position during anti-dumping investigations.
China's status as a non-market economy gives other WTO members the right to refer to export prices in third-party countries to determine if Chinese exports are priced unreasonably low. The "analogue country" method results in higher anti-dumping margins and can function as a trade barrier, giving local industries an unfair competitive advantage.