EU begins tricky path towards relaxing trade ties with China

Brussels

THE European Union will take the first step on Wednesday towards refashioning its trade ties with Beijing, torn over how to lower its defences to avert Chinese retaliation while protecting key industries against a damaging flood of cheap imports.

Commissioners from the bloc's 28 members will debate for the first time the politically sensitive issue of granting China "market economy status" from December, which Beijing says is its right 15 years after it joined the World Trade Organization.

The coveted status will make it much harder for Europe to impose anti-dumping duties on Chinese goods sold at knock-down prices, changing the criteria for determining a fair price.

A study by a group of 25 European manufacturing federations estimates that the EU could lose up to 3.5 million jobs if it removes its trade defe…