China Declares End to 'Developing Country' Privileges... Will WTO Reform Accelerate?

Some See It as a Diplomatic Gesture Ahead of APEC
China Maintains Developing Country Status Despite Pledge to Forgo Privileges
Uncertainty Remains Over Whether Real Change Will Follow

As China has announced that it will no longer seek special treatment as a developing country in future World Trade Organization (WTO) negotiations, some observers suggest that this announcement may remain a diplomatic gesture. With tariff negotiations between the United States and China still unresolved, analysts note that China appears to be responding to U.S. demands in light of the ongoing negotiations. However, they emphasize that for this measure to be effective, it is necessary to monitor the level of implementation by China, as well as the responses from the United States, the European Union (EU), and other developing countries.

AP Yonhap News

On September 23 (local time), Chinese Premier Li Qiang stated at the High-Level Meeting on the Global Development Initiative (GDI) held in New York, United States, "As a responsible major developing country, China will not seek new special and differential treatment in current and future WTO negotiations."

The WTO guarantees special and differential treatment (SDT) for developing countries, including implementation grace periods for regulations, relaxed trade liberalization obligations, technical and financial assistance, and protective measures in certain areas such as agricultural and food security. There is no separate definition or criteria for developing countries, and approximately 160 WTO member states can self-declare their developing country status. Although China is the world’s second-largest economy, it has maintained its developing country status on the grounds that its per capita income remains at the middle-income level.

According to the Associated Press, this decision by China represents "a change long demanded by the United States and an attempt to strengthen the global trading system, which has been shaken by the tariff war and protectionism."

One of the main reasons why WTO reform has stalled for years is China’s insistence on maintaining its developing country status. The United States has argued that WTO reform is impossible as long as China retains these privileges, and Japan and the European Union have taken similar positions. In this context, China’s declaration to forgo special treatment is seen as removing the biggest obstacle to WTO reform, potentially marking a turning point that could accelerate reform discussions.

WTO Director-General Ngozi Okonjo-Iweala welcomed China’s decision, expressing gratitude for China’s leadership and describing it as "the result of years of hard work" on X (formerly Twitter). She also emphasized, "This is a pivotal moment for WTO reform and an important signal toward a more balanced and fair global trading system."

However, there is considerable skepticism that China’s announcement to relinquish these privileges may remain merely a declaration. With speculation about a U.S.-China summit ahead of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, some view this as a political message aimed at easing strained U.S.-China relations.

In reality, China has stated that it will not seek developing country privileges only in future or ongoing WTO negotiations, while maintaining the rights it has already secured. Li Chenggang, China’s Vice Minister of Commerce and International Trade Negotiations Representative, emphasized, "With this declaration, China is giving up some benefits, but will maintain its developing country status within the WTO."

In other words, China’s statement means it will no longer seek new privileges, but it is not relinquishing its developing country status itself. This is why the European Commission welcomed China’s announcement but also pointed out, "China should stop utilizing developing country status even in existing agreements."

There are also doubts as to whether this measure will actually lower barriers to entry into the Chinese market. The Associated Press noted, "China’s announcement applies only to future and ongoing negotiations and does not affect existing agreements," adding, "It remains unclear whether this announcement will lead to greater access for foreign goods in the Chinese market."

Ultimately, analysts point out that for this measure to have a real impact, it is crucial to see to what extent China actually implements it, and how the United States, the EU, and other developing countries respond.

Former Chinese trade diplomat Lu Xiankun stated, "Now the ball is in the court of other major players. It is their turn to demonstrate responsibility and commitment to the trading system and reform." This suggests that, as China has declared its intention to forgo developing country privileges, the success of WTO reform now depends on how major countries such as the United States and the EU respond.

This content was produced with the assistance of AI translation services.