In a plenary session held on May 12, the members of European Parliament passed a non-binding resolution calling on the European Union not to recognize China as a market economy.
ANBOUND's research team is of the view that this resolution reflects that against the backdrop of global economic slowdown, the trade protectionism is increasing notable and many countries are willing to go breach the governing principles set by WTO and go against the spirit of market economy.
China will be subject to a worsening trade environment and the Chinese enterprises will be treated unfairly.
Therefore, China should appeal against such injustice and prepare to launch an effective 'counterattack’.
Firstly, China can make use of the WTO mechanism to appeal against such decision and resolve the problems.
Secondly, China can prepare the corresponding provisions to retaliate against the European Union, China is the EU's second-largest trading partner, with daily trade flows of over US$1 billion.
Trade barrier is a double-edged sword, the EU should be made realized that the trade protection comes at a price.
Thirdly, China should commence a diplomatic mission to lobby institutions that have benefited from the trade.
At such times, " China’s market" should be an effective deterrent "weapon"