Moved topic - "Full Market Economic status."

China vows to boost European investment

http://www.chinadaily.com.cn/china/2011-09/15/content_13689477.htm

DALIAN, Liaoning - Premier Wen Jiabao said on Wednesday that China is ready to increase its investment in debt-ridden Europe, and urged the European Union (EU) to recognize China as a full market economy.

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Full market economic status (FMES) has been a concern and an objective of China for quite some time. The whole issue, to gain FMES is somewhat of a "trump card" from a dual perspective. On one hand China wants to be able to trade on an international sphere using CNY. There are some nation states that have now forged agreements with China to permit two-way trade in CNY. Whereas most developed nation states and unions have not. So for the PRC, FMES is indeed a "trump card" that will ice the cake for future macro-economic policies. On the other hand, restrictions placed on China by the WTO and the influence of powerful western economies -- as conscientious objectors -- might draw out the process by holding the other "trump card."

The conscientious objectors that factor the qualification of China to be granted FMES attempt to trump the PRC on two fronts. First, on the issue of the establishment of the "rule of law." Second, on the assumed "human rights issues" of a rising China. There are other issues that might surface against the granting of FMES to the PRC, those being issues relating to territorial claims and access to international waters. With these and other issues looming, the big question is, whether or not the PRC should hold out and demand a global commitment from the WTO alliance with G8 economies & additionally forge an international agreement stating the premise leading to a timetabled FMES, or should they trust a verbal commitment without substance & grant economic assistance to the Euro-zone states. It might be that to do the former could lead to bigger setbacks to PRC objectives down the track if refused FMES in 2016. In light of the uncertainty of the integrity of certain global players, who could still pressure the WTO down the track, China should perhaps let the worms wriggle for awhile and push them to the brink, before they provide any hint of a bailout. Alternatively, minimize the level of the bailout, which leads to increasing pressure on the G8 to grant a fast-track application for FMES approval through the WTO.