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| During a high-level meeting on the Global Development Initiative (GDI) at the United Nations headquarters in New York on Sept. 23, Chinese Premier Li Qiang announced that China won’t seek new special, differential treatment in WTO negotiations. |
At a high-level meeting about the Global Development Initiative at the United Nations headquarters in New York in September, Chinese Premier Li Qiang announced that “as a responsible developing country, China will not seek new special and differential treatment in current and future WTO negotiations.” And he underscored three principles that remain unchanged: China's status as a developing member, its resolve to defend the legitimate rights and interests of developing members and its commitment to advancing the liberalization and facilitation of global trade and investment. The declaration was not a simple concession but rather a proactive move by China to adjust its strategic position within the WTO framework.
Amid profound shifts in the global geopolitical landscape and severe challenges to the multilateral trading system, what are the strategic considerations that underpin China's move? And what are the implications for the multilateral trading system and the geo-economic landscape?
Essentially, “special and differential treatment” is a provision of the World Trade Organization that grants certain privileges to developing countries. Its purpose is to promote the integration of less developed economies into the global trading system through longer transition periods, flexible obligations and technical assistance. Since joining the WTO in 2001, China has benefited from these provisions as a developing country. However, as it has grown into the world's second-largest economy, some developed economies (particularly the United States) have criticized Beijing for using its status as a developing country to secure preferential treatment on certain issues, thus creating asymmetries and frictions in negotiations.
In recent years, the United States and other Western countries have questioned China's WTO status and have urged Beijing to give up its rights. In March 2023, for example, the U.S. House of Representatives unanimously voted to strip China of its developing nation status, marking an escalation in Western efforts to politicize the issue at both diplomatic and legislative levels. In this context, China's recent announcement is intended to dispel accusations that it's getting a free ride. By voluntarily relinquishing new S&DT benefits, it is showing the international community that it's ready to assume greater international responsibility.
At the same time, China is driven by strategic considerations to promote WTO reform and repair the multilateral trading system. By renouncing its pursuit of new privileges, Beijing wants to create political space for stalled WTO reforms and ease tensions with the United States and Europe over rules and obligations. In responding to accusations of “asymmetric treatment,” it seeks to weaken the rhetorical advantage of those calling for it to assume stricter obligations. This, in turn, will foster a more constructive atmosphere for negotiations and open space for progress on other issues, such as technology transfers and subsidy rules.
The decision is also an important measure in support of China's high-quality domestic structural reforms and opening-up. It is consistent with the country's recent domestic policies promoting marketization, expanding opening-up and upgrading the industrial structure. By committing to a higher level of rules and standards, China seeks to boost innovation through competition and provide institutional support for high-end production and enhanced technological cooperation.
In the statement, China reaffirmed its status as a developing country and its commitment to solidarity with the Global South. This shows that while setting an example for the world by waiving new privileges, China will continue to support its partners from the developing world through other channels — such as development aid — thereby maintaining its influence among developing countries and building global development partnerships.
Notably, the recent announcement doesn't mean that China will automatically give up all existing rights granted to developing members under WTO agreements. In fact, China has not legally relinquished its status as a developing country and may continue to assert its rights under existing agreements. However, in future negotiations China will avoid the special provisions, thereby accepting, in practice, increased obligations or a shorter transition period.
By voluntarily forgoing new special rights, China has redirected the focus of trade negotiations toward improving multilateral trading rules. This shift positions China to take a more proactive role in WTO reform. The announcement is expected to break the long-standing deadlock in the reform process, facilitate the adoption of standardized criteria for special treatment (such as GDP, per capita income, share of global trade and other quantitative indicators) and accelerate progress on such issues as modernization of rules and restoration of the WTO dispute settlement mechanism.
In addition, China's announcement is likely to influence its economic and trade negotiations with the United States. In the short term, it could provide leverage to moderate U.S. negotiating positions, undermine Washington's demand for further concessions and facilitate pragmatic arrangements within bilateral or multilateral frameworks. Its long-term impact, however, depends on broader bilateral engagement on key issues such as subsidies, industrial policy and national security reviews. Should the United States use the announcement as a pretext to demand greater market access and greater transparency, China may seek equivalent or alternative benefits in other areas.
The EU and some developed and emerging economies have long advocated for clearer eligibility criteria for S&DT rights. China's statement may be interpreted as a positive signal, paving the way for more pragmatic cooperation with the EU on issues such as green subsidies and competition. However, the EU is likely to press China to address the special benefits it currently enjoys as a developing country.
China's announcement is an important strategic policy statement. It represents a concession to address external pressure and promote WTO reform as well as an institutional adjustment to support high-quality domestic development and opening to the world. In the short term, this move can foster a more constructive atmosphere for negotiations and create conditions for restoring the WTO's functions.However, its long-term effectiveness depends on how the policy signal is translated into concrete rule changes, and how — while giving up certain leverage — China can continue to support developing countries and sustain its own industrial transformation. When supported by more meaningful regulatory and institutional reforms, its move will serve as a catalyst for ushering in a new phase of global trade governance.
