About half a month ago, the European Parliament refused to grant market economy status to China, however, in a bid to prevent the same from transforming into a full-blown trade war, the European Commission has nearly reached an agreement with China on granting market economy status to China under the WTO framework.

The research team at ANBOUND Consulting is of the view that while China can try its best to negotiate with the European Commission, if the European Union went too far, China should fight back. Given that size of China's economy and the huge market in China, the trade war should not be China’s worry.

Compared with the United States, the European Union should show a greater degree of flexibility, the economic situation in the European countries will make them to make a more rational choice.