China to retain ‘developing nation’ status at WTO but forego its benefits

China announced it will retain its developing country status at the World Trade Organisation (WTO) but will forego requesting Special and Differential Treatment (SDT) in future negotiations. Senior delegates at the Chinese mission to the WTO in Geneva confirmed that while China will not pursue SDT benefits in new WTO agreements, its classification as a developing nation remains unchanged.

The announcement follows calls from other WTO members, especially the United States, for China to relinquish all SDT benefits.

Li Yihong, Chargée d'Affaires at China's permanent mission to the WTO, stated, "This does not involve any change to China's status as a developing country and in the WTO as a developing member, whether within the WTO framework or in any other context." She added, "China remains a key member of the global south and will always be a developing country."

The move was announced by Premier Li Qiang during a meeting on the sidelines of the United Nations General Assembly in New York. China, along with countries such as Saudi Arabia, has historically been identified as a developing member, allowing access to SDT benefits like higher tariffs and certain subsidies.

Li Yihong described the decision as evidence of China's "commitment to supporting the multilateral trading system". The choice to refrain from seeking SDT is intended to "inject positive energy" into efforts to advance WTO reform.

The United States has previously opposed countries selectively accessing SDT provisions, urging China to renounce all associated benefits. American officials argue that significant WTO reform depends on such steps from China and other major economies. Chinese delegates maintain that while SDT will not be pursued in future agreements, the nation’s status and participation as a developing country within the WTO will continue.