China to Forgo Developing Nation Status at WTO
NEW YORK – China announced Wednesday it will relinquish its status as a developing country within the World Trade Association (WTO), a designation it has held since joining the organization in 2001. The decision, made by Chinese Prime minister Li Qiang during a high-level meeting at the United Nations General Assembly, means China will no longer seek special and differentiated treatment in future WTO agreements.
WTO Director-General ngozi Okonjo-Iweala expressed ”great satisfaction” with the move, calling it “a crucial moment for the WTO” and “a significant step in the ongoing discussions about the role of the great advanced developing economies within the multilateral trade system.” She added that the decision reflects “a commitment to a more balanced and equitable world trade system, while sending a strong sign of support for WTO reform.”
The developing nation status has historically afforded countries certain flexibilities in implementing WTO obligations, particularly in areas like intellectual property, service liberalization, and agricultural trade. These countries are also eligible for technical assistance to help meet their commitments.
China’s economic ascent – now the world’s largest trading power and second largest economy overall (and frist by purchasing power parity) – has prompted increasing calls, particularly from the United states, for the nation to relinquish the designation. Li Qiang stated China is making the decision as a “great country in development and responsible.” okonjo-Iweala described the announcement as “the culmination of many years of hard work.”
