China Drops Developing-Nation Status to Revive World Trade Organization

Wed Sep 24 2025
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Key points

  • Move aims to support global trade system
  • US long pushed for this change
  • WTO chief calls decision major reform
  • China still identifies as developing nation

BEIJING: China has announced it will no longer seek the special treatment afforded to developing countries under World Trade Organization agreements — a shift that has long been requested by the United States.

Officials from the Commerce Ministry said on Wednesday that the move aims to strengthen the global trading system at a time when it faces challenges from tariff disputes and protectionist measures by individual nations to curb imports, reports AP News.

They did not directly mention the United States or President Donald Trump’s imposition of tariffs on numerous countries this year, including China.

The US has consistently argued that China should relinquish its developing-country status, given that it is the world’s second-largest economy. That status at the WTO allows for more lenient requirements in terms of opening domestic markets to imports and provides extended transition periods to implement such commitments.

Calls for reform

The WTO serves as a platform for international trade negotiations and monitors compliance with trade agreements, but its influence has waned in recent years, prompting widespread calls for reform.

The head of the Geneva-based organisation described China’s decision as “major news key to WTO reform” and expressed appreciation to the country’s leadership in a post on X.

“This is a culmination of many years of hard work,” wrote Ngozi Okonjo-Iweala, the WTO director-general.

Middle-income country

Chinese Premier Li Qiang made the announcement during a speech in New York on Tuesday at a China-hosted development forum held alongside the annual United Nations General Assembly.

While China identifies as a middle-income country, Commerce Ministry officials stressed that it remains part of the developing world.

Nonetheless, China has increasingly become a provider of loans and technical support to other nations working to develop infrastructure such as roads, railways, and dams — projects often delivered by large Chinese state-owned enterprises.

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