From China Daily:
Spain will propose that the European Union (EU) consider lifting an arms embargo on China and grant full market economy status to the country, Madrid's top envoy to Beijing has said.
Elaborating on Spain's tasks during the six months it holds the EU rotating presidency, Carlos Blasco Villa told China Daily that Madrid will also promote the signing of a comprehensive cooperative partnership between China and the EU.
...
Spain, which holds the rotating presidency from Jan 1 to June 30, will ask the EU to consider lifting the ban on arms exports to China, he said.
"We hope to deepen discussions on lifting the ban," he said.
Imposed two decades ago, the ban is cited by a number of analysts as an obstacle to China-EU ties.
Madrid is also keen to put on the EU's agenda the granting of full market economy status to the world's largest exporter, Blasco said.
As a compromise to join the World Trade Organization (WTO) in 2001, China allows WTO members not to recognize it as a full market economy until 2016.
But the lack of such a status has made China the victim of a growing number of dumping charges.
...
More than 80 countries and regions, including Australia and New Zealand have granted the status to China.
But China needs to further open up its service sector and make the yuan fully convertible to convince all EU members, Blasco said, adding that he understood the country's gradual and steady approach in opening up.
I'm assuming that making the yuan "fully convertible" means an exchange rate set by the market, but I could be wrong about that.
