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China Drops WTO Special Treatment Bid, Shifting Equity Balance for Developing Countries

China Drops WTO Special Treatment Bid, Shifting Equity Balance for Developing Countries
Thursday, 25 September 2025 06:14

• China ends bid for WTO special treatment in future deals
• Move boosts equity push, may aid poorer developing nations
• No S&DT in fisheries talks, impacts trade subsidy debates

China has announced that it will no longer seek Special and Differential Treatment (S&DT) in future World Trade Organization (WTO) agreements.

The decision, confirmed by Chinese Premier Li Qiang and praised by WTO Director-General Ngozi Okonjo-Iweala, marks a major turning point in the debate over equity between major emerging economies and genuinely developing nations.

Since its inception, the WTO has granted developing countries flexibility in implementing its agreements through measures such as extended transition deadlines, technical assistance, and temporary exemptions. These provisions were intended to compensate for perceived limited economic capacity.

However, the rise of China, which has become the world’s largest merchandise exporter and second-largest economy, drew criticism from numerous members who argued it was inconsistent for Beijing to still benefit from these accommodations.

This is a pivotal moment for the WTO,” Okonjo-Iweala stated, suggesting the Chinese decision demonstrates a commitment to strengthening equity among members and reviving WTO reform. The move also comes as the United States, under Donald Trump, launched a trade war, accusing Beijing of unfair trade practices.

The change could directly impact African nations. By foregoing the S&DT advantages, Beijing creates more space for economies that genuinely need the provisions to advance their priorities. This is particularly relevant in the WTO's negotiations on fisheries subsidies, where China, the world's largest subsidizer, will no longer be able to claim preferential treatment.

The effect may also be felt in discussions on agricultural and industrial subsidies, offering African countries more leverage to demand terms tailored to their specific constraints.

The World Bank classified China as an upper-middle-income country in 2010, and the International Monetary Fund (IMF) ranks it among the major emerging economies. Yet, only the WTO’s self-declaration system had allowed Beijing to retain its developing-country status, a provision criticized by advanced economies.

While the decision ends China's pursuit of S&DT benefits, it does not mean Beijing is giving up its self-definition as a developing country. The ultimate impact on the dynamics of the South-South coalitions at the WTO, where China holds a central place alongside African nations, remains to be seen.

Moutiou Adjibi Nourou

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