Playing a Long Game in Their Free Trade Regime between China and the EU: A Reflection on the Evolution of the MFN Clause

This article reviews the role of China and the European Union in the context of trade regionalization. It is the contention that trade regionalization is caused by an inherent flaw in the multilateral trading system and by the self-interested position of the main players. The history of these elements is tracked down over three centuries to reveal the different interpretations over time by the main players reflecting their power and interests. It is these interests that led to the diplomatic compromise after the Second World War that opened the road to fragmentation of international trade law. This article argues that China and the European Union, despite having different short-term interests, share a long-term interest in restoring the multilateral system at the centre of international trade.