NextFin news, BEIJING — On Tuesday, September 23, 2025, Chinese Premier Li Qiang declared at a forum held alongside the United Nations General Assembly in New York that China will cease to claim the special treatment accorded to developing countries under World Trade Organization (WTO) agreements.
This decision marks a significant shift in China's trade policy and responds to longstanding calls from the United States, which has argued that China, as the world's second-largest economy, should no longer benefit from the more lenient rules granted to developing nations.
Chinese Commerce Ministry officials stated on Wednesday that the move is intended to bolster the global trading system, which currently faces challenges from tariff wars and protectionist policies enacted by various countries. Although the officials did not explicitly mention the United States or the tariffs imposed by the Trump administration, the timing and context suggest a strategic response to these trade frictions.
The special treatment for developing countries at the WTO includes provisions such as longer timeframes for implementing trade commitments and the ability to maintain higher tariffs and subsidies. By relinquishing this status, China signals its readiness to assume greater responsibilities as a major global economic power.
WTO Director-General Ngozi Okonjo-Iweala praised China's announcement as "major news key to WTO reform," acknowledging it as the culmination of years of effort. She expressed gratitude to China's leadership in a statement posted on the social media platform X.
Despite this change, Chinese officials emphasized that China remains a middle-income country and continues to identify as part of the developing world. The country has increasingly become a source of loans and technical assistance to other developing nations, often through large infrastructure projects executed by state-owned enterprises.
The WTO, headquartered in Geneva, serves as a forum for global trade negotiations and enforces trade agreements. However, its effectiveness has been questioned in recent years, prompting calls for reform. China's decision to forgo developing country benefits is seen as a step toward revitalizing the organization and addressing concerns about fairness and equity in global trade rules.
This announcement comes amid ongoing trade tensions between China and the United States, including tariffs imposed by the Trump administration and retaliatory measures by China. The move may pave the way for more constructive dialogue on WTO reform ahead of the organization's ministerial meeting scheduled for 2026 in Cameroon.
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