China Relinquishes Developing Country Status at WTO, Signaling Major Trade Shift

China announced on September 23, 2025, that it will no longer seek the benefits associated with its developing country status within the World Trade Organization (WTO). This significant decision, made by Premier Li Qiang during the United Nations General Assembly in New York, marks a pivotal moment in global trade dynamics. China will voluntarily forgo Special and Differential Treatment (SDT) provisions, which historically allowed developing nations flexibility in implementing trade agreements.

The move addresses a long-standing point of contention, particularly with the United States, which has argued that a country of China's economic magnitude should not leverage these advantages. WTO Director-General Ngozi Okonjo-Iweala lauded the announcement, describing it as a "pivotal moment" and a culmination of years of effort, emphasizing China's commitment to a more equitable global trading system and its support for WTO reform.

While China will continue to identify as a developing country, its decision to step back from seeking new SDT benefits in current and future WTO negotiations is seen as a proactive measure to bolster the multilateral trading system amidst global trade tensions and protectionist trends. This strategic shift aims to foster a more level playing field for all WTO members and could potentially unlock progress in stalled reform talks.

Historically, WTO members self-designate their status as developing or developed, a practice that has been debated, especially for major economies like China. The U.S. has consistently advocated for major economies to relinquish SDT, arguing it provides an unfair advantage and hinders meaningful WTO reform. China's voluntary renunciation of these new benefits demonstrates a willingness to assume greater responsibilities commensurate with its economic standing, positioning itself as a responsible stakeholder in the international trade framework.