China backs WTO reform by dropping developing country benefits
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China will stop claiming special benefits reserved for developing countries in WTO negotiations, Premier Li Qiang announced at the UN General Assembly.
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A container ship of Chinese Cosco shipping lies in the harbor in Hamburg, Germany, Wednesday, October 26, 2022. (AP Photo/Michael Probst)
China has announced that it will no longer claim the trade benefits reserved for developing countries in negotiations at the World Trade Organization (WTO), a move that could pave the way for long-delayed reforms.
Premier Li Qiang made the announcement on the sidelines of the UN General Assembly in New York, saying Beijing will “not seek any new special and differential treatment” in current or future WTO talks.
The decision comes after years of criticism, particularly from the United States, over China’s self-designation as a developing country despite its status as the world’s second-largest economy.
Li’s comments were framed as part of China’s “Global Development Initiative,” a policy platform aimed at strengthening Beijing’s role in reshaping the global order. Though China will still consider itself a developing country, the premier emphasized that Beijing would not seek additional advantages under the WTO system.
WTO director-general Ngozi Okonjo-Iweala called the decision “a pivotal moment” for the organization, saying it reflects “a commitment to a more balanced and equitable global trading system.”
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Why China’s move matters for WTO reform
The WTO has long struggled with the issue of reform, particularly over how to treat powerful economies that still claim developing country privileges. These benefits include longer transition periods for implementing agreements and exemptions from certain obligations.
By voluntarily stepping back, China has removed a major obstacle to discussions on WTO reform. According to the Financial Times, Petter Ølberg, Norway’s ambassador to the WTO, said the move would “help us to make headway in the wider discussion about fairness in world trade.”
China’s decision follows earlier compromises, such as agreeing to phase out harmful fishing subsidies faster than required and facilitating Covid-19 vaccine production rights for developing nations.
Jens Eskelund, president of the EU-China chamber of commerce, said the shift could prevent a backlash against Chinese exports. “They would be better off talking about how to rebalance trade in manufactured goods before things blow up,” he noted.
The debate over developing country status
The question of who qualifies as a “developing country” has been controversial because WTO rules allow nations to self-designate. For years, the US and EU have pushed back against China’s classification, arguing it gives Beijing unfair advantages in global trade.
Li Chenggang, China’s senior trade negotiator, said to Xinhua that while Beijing would refrain from claiming special benefits, it still sees itself as part of the developing world, aligning with its leadership role among “global south” nations.
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China’s announcement is unlikely to end disputes with Washington and Brussels over trade balances and industrial policy. Both the US and EU remain concerned about overcapacity in Chinese manufacturing and its impact on global markets.
At the same time, the WTO is preparing for its 14th ministerial conference in Cameroon next March, where trade ministers will push for consensus on WTO reform, including fixing its dispute settlement system, which has been stalled since 2019.
By stepping back from developing country benefits, China signals a willingness to share more responsibility in global trade governance. Analysts say the move could strengthen Beijing’s hand in promoting its vision of a new multilateral order, even as tensions with the US and EU persist.
