EU dodges China market status question

The EU said Wednesday it will no longer debate whether or not China's economy is market driven, but will instead focus on new measures to tackle Chinese dumping and illegal subsidies.

The controversial issue of what is known as Market Economy Status matters because it means that partners will have to treat communist-ruled China as a free market equal when it comes to settling trade disputes.

China says that when it joined the World Trade Organisation in 2001, it was promised the status by end-2016, a move opposed in the 28-nation European Union as letting Beijing off the hook over a long series of disputes ranging from steel to solar panels. The European Commission agreed the bloc would have to meet its WTO obligations regarding China's membership, but at the same time it should draw up plans to "maintain a strong trade defence system."