The European Union (EU) should be careful not to fall into an anti-globalization trap, as seems more likely since the European Parliament denied China market economy status (MES).
The parliament made the resolution on Thursday at the behest of local vested interests to allow high tariffs on Chinese goods to continue.
Caught by a financial crisis, a debt crisis and a migrant crisis, the EU fears that granting China MES would bring Chinese products flooding into the European market with "strong social, economic and environmental consequences."H European lawmakers should be careful. The resolution is nothing more than the heavy hand of trade protectionism squeezing the world economy.
China advocates free, fair and open trade and has done a lot to free up the market at home.
"China has become the bedrock of global free trade," said Chinese Foreign Minister Wang Yi on Monday when asking the world to look at China's economy without prejudice.
China is the EU's second-largest trading partner, with daily bilateral trade of over 1 billion euros (1.13 billion U.S. dollars). MES for China would help the EU to attract investment and find new business as China's industrial landscape transforms, but perhaps the EU has problems enough of its own making. Excessive regulation has stifled any enthusiasm for European innovation and investment.
Maybe the EU should take a leaf out of China's book: cut red tape, support fair competition and reduce trade disputes. China neither caused nor can solve the problem of declining EU competitiveness.
Both EU and China should abide by the international rules. When China joined the World Trade Organization (WTO), MES status was guaranteed to begin on December 11 this year anyway.
"The European Parliament made its resolution in the interests of European nations, but it chose the wrong topic and target," said China's former chief WTO negotiator Long Yongtu on Sunday.
