China Relinquishes WTO Developing-Country Status Amid Tariff Tensions

China Ends Special WTO Privileges, Retains Developing Status

China declared it will no longer seek the special and differential treatment (SDT) benefits reserved for developing countries in World Trade Organization agreements, a move widely interpreted as a response to persistent U.S. criticism and mounting tariff disputes. Chinese Premier Li Qiang made the announcement during a speech at the United Nations General Assembly, stating that China will forgo SDT in both current and future WTO negotiations, according to reports from the Associated Press and Chinese state media. The SDT provisions had allowed China, despite its status as the world’s second-largest economy, to implement WTO rules more slowly and maintain higher tariffs and subsidies than developed members.

Officials from China’s Commerce Ministry emphasized that the country will continue to identify as a developing nation within the WTO framework, but will no longer claim the associated privileges. The ministry described the decision as an effort to strengthen the global trading system, which has faced increasing strain from tariff wars and protectionist policies. According to Reuters and Anadolu Agency, China’s move is intended to support multilateral trade reform and inject momentum into ongoing WTO discussions.

U.S. Pressure and Global Trade Reform

The United States has long argued that China’s use of developing-country status at the WTO provided unfair advantages, particularly in market access and transition periods for trade liberalization. U.S. officials have maintained that China’s economic size and global influence warrant treatment as a developed nation. The WTO’s Director-General Ngozi Okonjo-Iweala praised China’s decision as “major news key to WTO reform,” noting it was the result of years of negotiation and international pressure.

While Chinese officials did not directly reference U.S. President Donald Trump’s recent tariff actions, the timing of the announcement coincides with heightened trade tensions and calls for WTO modernization. China’s withdrawal from SDT benefits is seen as a step toward addressing U.S. concerns and facilitating broader reforms within the organization, which has struggled to adapt to evolving global economic conditions.

Implications for the Global South and Future Negotiations

Chinese representatives in Geneva clarified that the decision does not affect China’s status as a developing country in other international forums, nor does it impact existing SDT rights under previous WTO agreements. China will retain the flexibility to request SDT in specific cases and will continue to advocate for the interests of other developing nations. The move is intended to signal leadership within the Global South, with Chinese officials urging other countries to make independent decisions regarding their own WTO privileges.

Analysts note that China’s action could reshape the dynamics of future trade negotiations, potentially easing some multilateral disputes and encouraging other major economies to reconsider their positions. However, the full economic impact remains uncertain, as China continues to provide loans and technical assistance to developing countries and maintains its role as a key player in global infrastructure projects.