China has made a landmark decision at the World Trade Organization (WTO), announcing it will no longer claim the special trade benefits reserved for developing countries in future WTO negotiations. The move, declared on September 24, 2025, by Premier Li Qiang at a China-organized development forum during the United Nations General Assembly in New York, is widely seen as a response to longstanding demands from the United States and other major trading partners. It marks a pivotal shift in global trade dynamics and could pave the way for crucial reforms within the WTO.
For years, the United States and several European countries have criticized China’s use of the “developing country” status at the WTO. Under this designation, nations can access special and differential treatment (SDT) provisions, which allow for longer timelines to adopt trade rules, technical assistance, and exemptions from certain obligations—benefits that China, as the world’s second-largest economy, was increasingly seen as outgrowing. According to Reuters, Washington has insisted that true reform of the global trading system is impossible unless large economies like China relinquish these privileges.
Premier Li’s announcement was unambiguous. “As a responsible major developing country,” he said, “China will waive its previous WTO privileges related to developing country status.” However, Li and other Chinese officials were careful to clarify that this change applies only to future and ongoing WTO negotiations, not to existing agreements. China, they emphasized, will retain its self-classification as a developing country within the WTO framework and in other international contexts.
The WTO, headquartered in Geneva and counting 166 member states, has struggled with effectiveness in recent years. The organization’s ability to resolve disputes has been hampered since 2019, when the United States stopped appointing judges to the WTO’s Appellate Body, effectively paralyzing what many saw as the supreme court for international trade. These challenges, combined with rising protectionism and tariff wars—many initiated during President Donald Trump’s administration—have prompted urgent calls for reform and modernization of the global trade system.
The announcement was greeted with enthusiasm by WTO leadership. Director-General Ngozi Okonjo-Iweala described it as “a pivotal moment for the WTO. China’s decision reflects a commitment to a more balanced and equitable global trading system.” She further noted, according to AP News, that the move “takes away one of the criticisms in the organization that, you know, allowing countries that are relatively well-off to have access to these privileges.” Okonjo-Iweala also shared that the United States’ response was positive, adding with a laugh, “But they’ve also said ‘about time.’”
European officials echoed this cautious optimism. Olof Gill, spokesperson for the European Commission, told reporters in Brussels, “We welcome China’s decision to no longer avail itself of developing-country status in future trade agreements, but… we firmly believe China should stop availing itself of developing-country status under also existing agreements.” This sentiment underscores the ongoing debate about whether China’s shift should be retroactive or apply only to future deals.
Despite relinquishing these privileges, Chinese officials remain adamant about their country’s status. Li Yihong, China’s top envoy to the WTO, told reporters in Geneva, “It’s China’s own decision. This does not involve any change to China’s status as a developing country and in the WTO as a developing member, whether within the WTO framework or in any other context. China remains a key member of the global south and will always be a developing country.”
China’s self-identification as a developing country is not just a matter of semantics. The WTO does not officially classify countries as developed or developing; instead, members self-declare. Historically, developing status has provided crucial leeway for countries to protect their emerging industries through higher tariffs, subsidies, and extended timelines for compliance with international trade rules. For China, these benefits have supported its rapid economic ascent over the past decades.
Yet, as China’s economic footprint has expanded, so too has its global influence. Increasingly, China has become a source of loans and technical assistance to other countries, especially for massive infrastructure projects like roads, railways, and dams—many led by Chinese state-owned enterprises. This transformation has led some to question whether China should continue to enjoy the same exceptions as poorer nations struggling to develop basic industries.
According to Bloomberg, Premier Li’s decision is viewed as a major step toward resolving one of the most persistent pain points in U.S.-China relations. Keith Rockwell, a trade analyst and former WTO communications director, told Reuters, “It’s certainly been a longstanding U.S. complaint, and if they are able to move off that, that is something that would be, I would think, very helpful.”
WTO Director-General Okonjo-Iweala, speaking at a summit hosted by Semafor in New York, emphasized the broader implications: “This is a culmination of many years of hard work.” The move, she said, opens the door for badly needed WTO reform, especially as the organization seeks to regain its footing amid a global tide of protectionism.
China’s Commerce Ministry officials were quick to point out that the decision was entirely voluntary and not meant to pressure other developing countries to follow suit. “It’s China’s own decision,” Li Yihong reiterated, making clear that Beijing’s move should not be interpreted as a new standard for all emerging economies.
Still, the announcement leaves some questions unanswered. Will China’s shift encourage other major economies with developing status—such as India or Brazil—to reconsider their own positions? And will the United States and European Union push for China to give up its existing benefits, not just abstain from new ones?
Xiankun Lu, a former senior Chinese trade diplomat, offered a forward-looking perspective, telling Reuters the move “would put an end to the current debate about the rebalance of rights and obligations among major players of the WTO, at least for China. Now the ball is in the court of other major players to demonstrate their responsibility and commitment to the system and its reform.”
As the dust settles on this historic decision, one thing is clear: the global trading system is at a crossroads. China’s willingness to forgo special treatment in future WTO negotiations may not resolve every trade dispute overnight, but it signals a readiness to play by new rules—and challenges others to do the same. The world will be watching to see if this “pivotal moment” leads to the revitalization of the WTO and a more balanced era in international commerce.