Upholding multilateral trading system and advancing global economic governance reform

At a high-level meeting on the Global Development Initiative (GDI) recently held by China at the United Nations Headquarters in New York, China announced that it will not seek new special and differential treatment available to developing countries in current and future negotiations at the World Trade Organization (WTO).

WTO Director-General Ngozi Okonjo-Iweala praised this decision as a critical moment for the WTO, saying that it demonstrates China's commitment to building a more balanced and equitable global trading system. She emphasized that the move provides strong momentum for WTO reform, helping to make the organization more adaptive and effective.

The multilateral trading system with the WTO at its core is facing severe challenges. Calls to safeguard the multilateral trading system have grown stronger across the international community, alongside rising expectations for the WTO to play a more active role.

Since joining the WTO in 2001, China has achieved rapid economic and social development, transforming into the world's second-largest economy, top merchandise trader, and second-largest services trader. Associate Professor Hu Jianguo(Nankai University School of Law) notes that China's expanding economic influence now positions it to play a more prominent role in safeguarding the multilateral trading system, participating in WTO reform, and shaping international economic and trade rules.

Ji Wenhua, professor at the School of Law, University of International Business and Economics, explained that special and differential treatment is an institutional arrangement under the WTO framework granted to developing members. As the world's largest developing country, China has strictly observed WTO rules and fully honored its accession commitments since acceding to the organization. On this basis, Ji said, continuing to exercise its rights in accordance with WTO rules is consistent with international law and the principles of the WTO.

Amid rising unilateral tariffs and trade conflicts that undermine the multilateral trading system, disrupt global trade order, and heighten economic instability, Ji adds that China's announcement can help break deadlocks on development issues at the WTO, accelerate institutional reform, and boost developing countries' confidence in the multilateral trading system.

Han Yong, director general of the Department of WTO Affairs at China's Ministry of Commerce, reaffirmed three guiding principles that remain unchanged: China's status as a developing member, its commitment to defending the legitimate rights of developing countries, and its support for trade and investment liberalization and facilitation.

Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics, explained that this decision, while refraining from seeking additional differential treatment, does not alter its legal status as a developing country within the organization. "China has always been, and will always remain, a member of the Global South, standing together with fellow developing countries," said Tu.

He added that these three "unchanged" principles represent China's solemn commitment to safeguarding the multilateral trading system and its concrete actions to uphold the rightful place of developing countries in global governance.

Ji Wenhua further clarified that China's position papers and policy statements to the WTO have clearly defined the scope and application of this decision.

First, the decision applies solely within the WTO framework and does not set a precedent for, or affect China's status and treatment in, other international organizations or treaties.

Second, it concerns only whether China seeks special and differential treatment in negotiations, and does not change its developing-country status, which remains consistent with WTO rules, practice, and China's stage of development.

Third, the decision applies only to current and future negotiations and does not affect, nor retroactively apply to, special and differential treatment that China already enjoys or has requested in ongoing negotiations.

Accordingly, assertions that this decision means China has become a developed country within the WTO or is no longer a developing country are incorrect and misleading.

In recent years, China has firmly defended the multilateral trading system, actively participated in WTO reform and the adjustment of international economic and trade rules, and worked to make the global economic governance system more just and equitable.

"At a time when protectionism and unilateralism are spreading, and some major countries disregard international rules and impose unilateral tariffs, the WTO's authority and effectiveness face grave challenges," Ji said,
At this critical juncture, Ji argued, China's pragmatic actions reject zero-sum thinking and demonstrate its sense of responsibility for advancing global development. This move underscores China's commitment to safeguarding the international economic and trade order, and highlights its leading role in global governance.