While granting China market economy status (MES) will mean win-win results for China and the EU, refusal to do so could put one of the world's most important trade relationships at risk.

Despite media reports saying the two sides are close to a deal on the issue, there is still strong opposition among some EU policymakers and lawmakers, mainly citing the EU's internal standards for a market economy.

However, either based in law or fact, it shouldn't be a difficult decision to make.

The protocols for China's accession to the World Trade Organization (WTO) in 2001 dictate that China will automatically switch over to MES when the Surrogate Country approach expires 15 years later.

While the Surrogate Country approach is in effect, a third country or region's prices can be used to assess if a certain country is exporting below market value or dumping.

The approach applicable to China expires on December 11, according to Article 15 of the accession protocols.

This means the legal foundation for treating China as a non-market economy is coming to an end.

Whether or not China meets the EU's own standards for MES is irrelevant.

The protocols are the consensus reached between China and other WTO members during the accession negotiations. No signatory party can evade its obligations by citing domestic laws as an excuse. Doing so would be a distortion of rules and a deliberate misinterpretation of WTO protocols.

The EU's refusal to fulfill its obligations could force China to resort to legal litigation under the WTO framework, and economic and trade relations between the two sides could be hurt.

Worst-case scenario, an all-out trade war would break out between the two economies, which are mutual key export markets, that could drive prices way too high.

China is the EU's second-biggest trading partner, with daily trade flows of over 1 billion euros ($1.13 billion). Granting China MES will tighten China-EU trade ties, given the increasing interdependence between the world's two major economies.

The EU's refusal to recognize China's MES smells of political prejudice and protectionism, which has been on the rise recently as the global economy endures its prolonged and slow recovery.

Business insiders fear that the EU's failure to grant China MES is tantamount to a permit to arbitrarily impose anti-dumping measures against the country.

The EU already has a track record of turning to protectionist measures against Chinese products. Among the EU's 73 anti-dumping measures currently in place, 56 are targeted at Chinese imports.

The authors are writers with the Xinhua News Agency. opinion@globaltimes.com.cn