China to forgo WTO developing-nation benefits, in bid to be free trade ‘defender’

Beijing aims to strengthen its credibility, draw a sharp contrast with US, says analyst

- Lim Min Zhang

China’s pledge to no longer seek developing country benefits in the World Trade Organisation (WTO) is meant to strengthen its claim as a “defender” of the international rules-based trading system that seeks to facilitate free trade, said analysts.

Chinese Premier Li Qiang announced the move at a UN meeting in New York on Sept 23, saying that as a major responsible developing country, China will not seek access to new special and differential treatment (SDT) in current and future WTO negotiations.

The meeting, hosted by China, was attended by UN Secretary-General Antonio Guterres, WTO Director-General Ngozi Okonjo-Iweala and leaders from developing countries such as Kazakhstan, Angola, Pakistan and Iraq.

WTO members can declare themselves as “developed” or “developing”. The latter status allows countries to enjoy SDT benefits such as longer timeframes to implement trade commitments or more favourable trading terms.

China’s move comes as the US, under President Donald Trump, has been perceived as walking away from the global free trade system it once championed by imposing unilateral tariffs, which are considered illegal under WTO rules.

Mr Stephen Olson, a visiting senior fellow at Singapore’s ISEAS — Yusof Ishak Institute specialising in international trade, said China’s move is meant to strengthen its credibility as Beijing tries to position itself as a “defender” of the international rules-based, free trade system.