In a move that could reshape the landscape of global commerce, China announced on Tuesday, September 23, 2025, that it will forgo the special treatment typically granted to developing countries in World Trade Organization (WTO) negotiations. The decision, revealed by Chinese Premier Li Qiang during a speech at the annual United Nations General Assembly meeting in New York, marks a significant shift in China’s approach to international trade policy and has been widely interpreted as a step towards supporting much-needed reforms at the WTO.
For years, China’s status as a developing country at the WTO has been a contentious issue. The designation allowed China to access Special and Differential Treatment (SDT) benefits, which include lower obligations to open domestic markets to imports and longer transition periods to implement market-opening reforms. These advantages were designed to help developing economies integrate into the global trading system at a manageable pace. However, as China’s economic clout grew—now standing as the world’s second-largest economy—the United States and other major economies increasingly called for China to relinquish these benefits, arguing they gave Beijing an unfair edge in global trade.
Despite mounting external pressure, Chinese officials have consistently maintained that their country remains a developing nation. This week’s announcement does not alter that position. Li Yihong, Charge d’Affaires of the Chinese mission to the WTO in Geneva, emphasized on Wednesday, September 24, 2025, that, “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.” She added, “China remains a key member of the global south and will always be a developing country.” According to Li, the decision to forgo SDT benefits is intended to inject “positive energy” into ongoing discussions about reforming the WTO and demonstrates China’s “commitment to supporting the multilateral trading system.”
China’s shift comes at a time when the global trading system is under significant strain. The past several years have seen an uptick in tariff wars and protectionist policies, with countries—including the United States under President Donald Trump—imposing tariffs on a range of imports. These moves have threatened to undermine the WTO’s effectiveness and prompted widespread calls for reform. Commerce Ministry officials in Beijing made it clear that their decision was “an attempt to boost the global trading system at a time when it is under threat from tariff wars and protectionist moves by individual countries to restrict imports,” as reported by Business Standard.
Interestingly, while the United States has long been the loudest voice demanding this change, China’s official statements made no direct mention of the U.S. or President Trump’s trade policies. Instead, Premier Li Qiang framed the move as one intended to strengthen the multilateral system for the benefit of all. “China will no longer seek access to SDT in current and new WTO agreements,” Li announced, underscoring a desire to “boost the global trading system at a time when it is under threat.”
WTO Director-General Ngozi Okonjo-Iweala hailed the announcement as a pivotal moment for the organization. In a post on X (formerly Twitter), she wrote, “This is a culmination of many years of hard work.” Okonjo-Iweala described the development as “major news key to WTO reform,” echoing sentiments from many trade experts who have argued that meaningful reform could not proceed while major economies like China continued to claim the privileges of developing status.
The specifics of what China is relinquishing are not trivial. SDT benefits at the WTO allow developing countries to protect their domestic industries through higher tariffs and to delay the implementation of market-opening measures. By forgoing these advantages, China is signaling a willingness to play by rules more akin to those followed by advanced economies, at least in future trade agreements. However, the country is not renouncing its status as a developing nation. According to Chinese officials, this distinction is important, as China continues to see itself as a “middle-income country that remains a part of the developing world.”
Indeed, China’s self-identification as a developing country is rooted not just in economic data but also in its global role. In recent years, China has become a major provider of loans and technical assistance to other developing nations, funding infrastructure projects like roads, railways, and dams—often through its state-owned enterprises. This dual identity—as both a global economic powerhouse and a champion of the global south—has allowed China to wield significant influence in international organizations, even as its economic status has evolved.
For the United States, China’s decision is a partial victory. Washington had pushed for China to fully renounce all SDT benefits and to officially change its status within the WTO. Instead, Beijing has chosen a middle path: it will no longer seek SDT in new and ongoing negotiations but will not alter its formal designation. This compromise may not satisfy all critics, but it is likely to be seen as a pragmatic step forward by many in the international community.
The reaction among other WTO members and observers has been largely positive. Many see China’s move as a sign of good faith that could help break the deadlock on broader WTO reforms. The organization, which was established to provide a forum for global trade talks and to enforce trade agreements, has struggled in recent years to fulfill its mandate amid rising nationalism and trade disputes. As Okonjo-Iweala noted, “major news key to WTO reform” is rare, and China’s announcement could serve as a catalyst for further changes.
Still, challenges remain. The debate over what constitutes a developing country at the WTO is far from settled, and other major economies—such as Saudi Arabia—continue to claim similar privileges. The United States and the European Union are likely to keep pressing for stricter criteria and more accountability in how countries self-identify within the organization. Meanwhile, China’s decision to maintain its developing country status, even as it relinquishes certain benefits, reflects the complex realities of a global economy in transition.
As the dust settles, one thing is clear: China’s willingness to forgo SDT benefits in future WTO negotiations marks a turning point in the ongoing effort to modernize the global trading system. Whether this move will be enough to restore confidence in the WTO and pave the way for broader reforms remains to be seen. But for now, the world is watching—and waiting to see what comes next.