Many assumed, and some still do, that market economy status after that date will be granted automatically. However, that fails to take into account the ratification of the EU's Lisbon Treaty in December 2009. This gave the European Parliament a veto over all trade agreements. Consequently, the commission will need to prepare a proposal on granting market economy status to China for the European Parliament's consideration toward the end of 2015. This will be no mere procedural detour from the pre-Lisbon arrangements, but rather a serious hurdle to be negotiated. The European Parliament has already demonstrated its willingness to get tough on trade. The Anti-Counterfeiting Trade Agreement, despite the backing by all member states and the commission, was overwhelmingly rejected by the European Parliament.

In November 2013 the European Parliament's China resolution was a catalogue of complaints and criticism: "...European enterprises deplore the existence of numerous tariff and non-tariff barriers to the Chinese market, such as certain forms of discrimination against foreign operators, as well as the complexity of the tariff structure and the technical barriers to trade".

The EU-China relationship in terms of trade and political cooperation bilaterally and at the global level are too important to be left to chance. Brussels and Beijing must act in concert to ensure the right outcome. The commission in Brussels must start the heavy political lifting required with the council and parliament.

This is no mere trade issue, rather a fundamental decision that will shape Europe's relations with China for decades to come. The European Parliament has strong views on the need to address climate change, global piracy and the proliferation of weapons of mass destruction. To address these, Brussels needs Beijing. That needs to be made crystal clear. At the same time, China has to show that it is serious in delivering on Xi's promise to use foreign investment to spur innovation and competition.

The author, former deputy chair of the European Parliament Socialist Group, is executive director of POL-INT and boarding member of European Institute of Asian Studies.