China on Friday urged the European Union (EU) to fulfill its international obligation by granting the country Market Economy Status (MES). Earlier this week, the EU refused to grant China MES, citing domestic criteria as the main reason.

An unidentified representative of China's Ministry of Commerce said on Friday that the EU must fulfill the World Trade Organization (WTO) protocol, according to which China is to be granted MES by December 2016.

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The ministry's representative said that international rules rather than domestic criteria must be taken into consideration when granting MES.

Among EU Countries, Germany and the Netherlands have pledged their support for China to be granted market economy status. However, Germany's support is conditional as it seeks to safeguard its local sensitive industries.

Outside the EU, around 80 countries including Russia, Brazil, and Australia recognize China as a 'market economy.'

Experts say that the EU's concern over the influx of cheap Chinese products into its market is stopping it from recognizing China as a 'market economy.' Experts claim that the EU fears cheap Chinese product can pose a great threat to its local industries.

"For China, having (market economy status) would make it harder for Europe or other economies to impose anti-dumping duties on Chinese goods sold at knock-down prices under the WTO rules, because it would change the method for determining a fair price," Ma Yu, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said.

Many experts fear that both parties will resort to a tit-for-tat policy if the deadlock over China's MES if the issues are not resolved. However, some are hopeful that EU lawmakers will find a middle ground that will satisfy the needs of both parties.

Despite the deadlock, the annual trade between China and the EU amounts to billions of Euros. China is officially one of the largest trading partners of the EU.

Tagschina, China Market Economy Status (MES), China and European Union, European Union, EU