皇冠体育app

BEIJING - European Union lawmakers' vote against granting market economy status (MES) to 皇冠体育app sends a worrying signal that one of the world's most important trade relations risks deteriorating.

The EU Parliament said in a resolution on Thursday that 皇冠体育app's excess production capacity and cheap exports are hurting EU jobs, urging the European Union not to grant 皇冠体育app the MES.

Although the non-binding resolution by the EU parliament is not legally effective, it could carry the wrong message that 皇冠体育app's booming trade with the EU is based on artificial and unfair price advantages, which distorts the real picture.

Since 皇冠体育app joined the World Trade Organization (WTO), it has been relentless in trying to reduce the government's sway in economic activity and give market forces a bigger role.

As the world's second-largest economy is working to transition from relying on exports to consumption, 皇冠体育app is grappling with soaring production costs. The country's exporters have felt the growing pains.

With the global economy battling with a prolonged and slow recovery, major trading countries tend to seek protectionism to support domestic industry. Trade frictions have been rising dramatically in the steel sector globally of late, as the world's major steel makers are facing production overcapacity.

The EU's censure of 皇冠体育app as being accountable for the steel glut in the 27-country bloc is untenable. 皇冠体育app's steel exports to the EU are small compared with other countries. The Asian giant's low value-added steel products are complementary to the EU's steel market portfolio.

Without exports from 皇冠体育app, the EU would still have to turn to other countries to import similar products. That will not stem job losses in the EU.

The opposition to giving 皇冠体育app MES within the EU mainly comes from southern European countries, where steel, textile and other manufacturing sectors have been hard hit. More competitive manufacturing countries such as Britain and Holland have voiced their support for granting 皇冠体育app the status.

In its resolution statement, the European Parliament recognized the importance of the EU partnership with 皇冠体育app, stressing that Chinese market "has been the main engine of profitability for a number of EU industries and brands."

皇冠体育app is the EU's second-biggest trading partner, with daily trade flows of over 1 billion euros ($1.14 billion). Giving 皇冠体育app MES will make 皇冠体育app-EU trade ties stronger than ever before, given the increasing interdependence between the world's two major economies.

The EU should think twice before making a final decision on 皇冠体育app's MES. Only by heeding the progress 皇冠体育app has made in its market economy agenda and discarding deeply-rooted prejudice can 皇冠体育app-EU trade relations move forward in a healthy way that bodes well for both.

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