After fierce debates around whether to grant China Market Economy Status（MES），the European Commission put forward a proposal for modifying basic regulations on anti-dumping and anti-subsidy and the Council reached an agreement on the reform of lesser duty rule. The EU is intended to abolish the conditional market economy treatment applied to the economies in transition and add four mechanisms aimed at strengthening the efficiency of trade defense instruments. A number of problems lie within the EU’s proposal on China’s MES. In particular，despite the same treatment granted to China on paper by the EU’s proposal as to other WTO members，it is very likely that the EU will discriminate China in practice and it may increase trade barriers against China. It is suggested that Chinese government and enterprises follow the progress of the EU’s proposed legislation on China’s MES closely and make preparations for the negative impacts the new legislation may exert.