Peter Mandelson is in town again.

Less than two weeks after the European Union (EU) released its latest policy paper on China-EU relationship - much of it devoted to trade relations - its trade commissioner landed in Beijing to talk with Chinese officials about bilateral trade.

A main theme of his trip is to ask China to open its market wider to European companies.

The EU's argument for China opening the market wider, like that of some other trade partners of China, is based on its trade deficit with China.

However, it is highly likely that even Mandelson himself, who personally is against protectionism, would not buy this argument.

In fact, the EU, in its latest report about its trade relations with China, also admits that China's phenomenal performance in international trade comes mainly from its fundamental economic strength; that China's trade surplus is partly a result of Asian economic integration; and that European consumers greatly benefit from China's inexpensive goods.

As always, anyone who tries to press a trading nation for a wider market opening simply for the trading nation's surplus is just supplanting good economic judgment with the Philistine concept of reciprocation.

For China, the imperative remains to implement its commitments made five years ago for entry into the WTO. It is a consensus that in general, China deserves a high score for fulfilling what it promised within the WTO.

Any new market-opening demand should be discussed within the framework of the Doha Round.

It can be predicted that in pushing China to open, EU officials have been repeating their accusations about China's behaviour in trade and investment. They also like to lecture Chinese officials about the need for more reforms in areas such as making commercial banks more willing to grant loans to non-State borrowers.

Some of the charges are certainly justifiable. The country does have much to do in improving its protection of intellectual property rights, although the country has been paying increasing effort to address the issue.

However, no one is perfect. Champions of fair trade in Europe did not hesitate much to abandon principle for fairness in launching anti-dumping attacks against innocent textiles and shoes made in Asia.

In term of reforms, China is now well aware what it should do in its pursuit of a more mature, sophisticated market economy. In the banking sector, for example, there is a pronounced goal to enable the banks to make business decisions regardless of ownership of the borrowers. But any reform beyond China's WTO commitment should follow the country's own plan and pace.

In talking with his Chinese counterpart, Mandelson will surely receive a more positive reaction if he seriously talks about topics such as China's market economy status.

(China Daily 11/08/2006 page4)