China fails to win status from EU

BEIJING, May 22 (UPI) -- China, after wooing and praising the European Union as its largest trading partner, failed to win market economy status from the group.

The official Xinhua news agency reported that despite years of lobbying by the Chinese government, the EU did not confer the status at this week's EU-China summit in Prague. No reason was given for EU's decision.

Xinhua reported the European entity, however, said "it was willing to deal with the issue objectively."

The Chinese media gave extensive coverage of China's ties with the EU and events before and after the summit. The EU is now China's largest trading partner with trade topping $400 billion last year.

The summit was held at a time when the Communist giant, with its economic clout, seeks to play a more dominant role in world finance and develop the EU for growth of its exports even as the U.S. dollar faces increasing challenges to its role as the leading world currency.