EU-China Relations and Market Economy Status: EU foreign policy in the technical trap

In September 2011 an old issue returned to the fore of relations between China and the European Union (EU): the question of China's market economy status (MES). Chinese State Premier Wen Jiabao, in his opening speech at the World Economic Forum in Dalian, China, confirmed China's willingness to increase investment in Europe in support of the embattled euro, adding that it would be a sign of friendship if the EU could recognise China as a market economy and expressing his hope for progress on the matter during the next EU-China summit. 1 These remarks followed shortly on reports about Italian efforts to convince Chinese government funds to purchase Italian debt, in an attempt to stem the tide of rising interest rates requested on Italian government bonds. 2 Italy has been known as one of the EU member states with more protectionist reflexes when commercial relations with China are concerned, and the question arises of whether Wen's display of optimism on MES is in any way related to China's new leverage with Italy.