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China and the EU both want a high-level investment accord. In fact, the two sides have made significant progress in this regard, and the agreements they have reached on a range of topics and the arrangements for cooperation will lay a good foundation for their talks to discuss the next stage of cooperation. It is also important to note that the EU is China's largest trade partner, while China is the EU's second largest.

Despite all this, the lack of a free trade agreement between the two sides will hamper the further development of two-way trade. So reaching a free trade agreement at an early date will not only consolidate the China-EU win-win strategic partnership, but also elevate two-way trade and cooperation to a much higher level.

China's customs data show the country's import and export volume reached $3.56 trillion in the first 11 months of 2015, the largest by any country. China's rising labor costs and technological progress have prompted its export-oriented enterprises to wean themselves away from low-price competition and gradually shift to higher models of growth.

Moreover, the difference in the prices of products made by China and other emerging countries is shrinking because of the above factors, making it unnecessary to continue the practice of using a third country as reference to decide whether to impose anti-dumping tax on products from China.

The US has never taken substantial steps to recognize China as a market economy, although it has made such a promise several times, because it has been using the issue as a political tool to pressure China to change its policies on the yuan's exchange rate and US national debt.

Being recognized as a market economy may be important for China, but it will be a lot more important for offsetting the negative influence of some of the WTO's existing policies and to make international trade really fair.

China is further opening up its economy to the outside world, which will boost global trade and help improve the world economy. Hopefully, the US and the EU realize this and recognize China as a market economy in order to energize global trade and win-win partnerships.

The author is a researcher with the Chinese Academy of International Trade and Economic Cooperation affiliated to the Ministry of Commerce.