As the deadline of the World Trade Organization approaches on December 11, it is likely that European goods made with parts and materials imported from China would see an escalation in prices. On that day, the European Union could grant China ‘market economy status’ making it harder under WTO rules for the EU to protect its industries from what it deems as unfair trade practices by Beijing.

Or, it may so happen that the EU could draft new trade rules that do away with the distinction between market and non-market economies that the bloc has used in the past. The odds are against China getting the market title by the deadline, it is understood.

Based on a proposal made public last month, the European Commission, the EU’s executive arm, aims to tighten its rules against foreign-government subsidies and dumping or exporting products at below domestic prices. A new slate of European rules is likely to punish those that benefit from Chinese subsidies and discourage Chinese companies from dumping.