China gives up the developing-nation label to bolster the WTO amid Trump tariffs
China has declared that it will cease to seek the special treatment granted to developing countries under World Trade Organisation agreements, marking a significant shift that has been long advocated by the United States. On Wednesday, officials from the Commerce Ministry articulated that the initiative is designed to improve the global trading system, which is presently encountering difficulties stemming from tariff wars and protectionist measures implemented by numerous countries to restrict imports.
This year, the United States, along with President Donald Trump’s implementation of tariffs on various countries, including China, was not specifically mentioned. The United States has consistently asserted that China should give up its designation as a developing country, considering it is the second-largest economy in the world. The advantages of that designation at the WTO include diminished responsibilities to liberalize their markets to imports and prolonged transition periods for implementing these market-opening measures. The WTO functions as a crucial platform for international trade discussions and is responsible for upholding agreements; however, its effectiveness has diminished over time, resulting in increasing calls for reform.
The leader of the Geneva-based organization described the Chinese action as noteworthy news crucial for WTO reform, conveying appreciation and gratitude towards the country’s leaders in a post. This signifies the peak of numerous years of dedicated effort, wrote Ngozi Okonjo-Iweala, the WTO director-general. During a speech given in New York on Tuesday, Chinese Premier Li Qiang revealed the change at a China-organised development forum held in conjunction with the annual meeting of the UN General Assembly.
China is categorized as a middle-income country, with representatives from the Commerce Ministry emphasizing its position as a member of the developing world. It has increasingly emerged as a provider of loans and technical assistance to other nations that are aiming to construct roads, railways, dams, and other significant projects. These projects are frequently executed by prominent Chinese state-owned enterprises.
