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File photo of EU headquarters in Brussels， capital of Belgium. (Xinhua)


by Shuai Rong


BRUSELLES， May 14 (Xinhua) -- EU Denying Market Economy Status (MES) to China would be a strategic mistake， and it may well cause deterioration of political relationship between EU and China， Luigi Gambardella， president of ChinaEU， a business-led association， said in a recent interview with Xinhua.


In a non-legislative resolution on Thursday， the EU lawmakers were opposed to recognizing China's MES as set out in global trade rules.


China joined the World Trade Organization (WTO) in 2001. Under the country's accession protocol， China will automatically transit to a market economy status for Europe by Dec. 11， 2016.


Gambardella told Xinhua that if the EU denies MES to China， in the short term， there are concrete risks of retaliation from the Chinese side， causing EU economies serious pain and uncertainty on what will be the end result.


"It could threaten the positive outcome of the ongoing negotiations for the bilateral investment treaty and the potentiality to conclude a FTA between China and the EU - which according to Commission estimates could raise European prosperity by 250 billion euros，" said the president.


"Moreover China is the first， and only， non EU country which has so far generously committed to invest in the Juncker Plan，" he stressed. Closing the door to China may thus have "very negative" effect.


One of the main drivers of the MES debate is the fear of job losses in Europe's less competitive manufacturing industries.


Gambardella believes it is time for the EU to reflect on why its ability to compete with other economies is getting worse in many sectors.


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