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What Motivated China’s Shift on WTO Privileges?

China’s voluntary decision to forgo further SDT provisions reflects its commitment to promoting fairness and mutual respect in international trade, while also acknowledging its own developmental achievements.

On September 23, Chinese Premier Li Qiang made a landmark announcement at a high-level meeting on the Global Development Initiative (GDI) on the sidelines of the general debate of the 80th Session of the United Nations General Assembly: China will not seek new special and differential treatment (SDT) in current or future World Trade Organization (WTO) negotiations.

WTO agreements contain SDT provisions that give developing economies special rights and allow other members to treat them more favorably. These provisions include longer time periods for implementing agreements and commitments, as well as measures to increase trading opportunities for developing economies, among others. China joined the WTO in 2001 as a developing member.

SDT provisions have allowed developing members to benefit from preferential terms in trade agreements. However, ongoing debates about SDT have highlighted concerns about its potential misuse in global trade frameworks. China’s voluntary decision to forgo further SDT provisions reflects its commitment to promoting fairness and mutual respect in international trade, while also acknowledging its own developmental achievements.

The phrase “will not seek new SDT” is particularly telling. While China retains its right to benefit from existing SDT provisions, its pledge signals that it does not intend to seek expanded or additional preferential terms in future deals. This approach aligns with China’s unswerving commitment to facilitating trade liberalization.

China’s announcement also underscores its belief in the importance of multilateralism. The WTO, with its 166 members and an additional 22 economies seeking accession, is the cornerstone of the multilateral trading system that has shaped global economic interactions for decades. China’s decision to forgo new SDT provisions reflects its understanding that a rules-based global trading system benefits all economies, particularly in a world increasingly shaped by shared challenges.

At the World Trade Organization (WTO) General Council’s fourth meeting of 2025 on October 5-6 in Geneva, Switzerland, China introduced the agenda item “Heightened Trade Turbulence and the WTO’s Response.” (Photo/Permanent mission of China to the WTO)

This move is consistent with China’s broader foreign policy objectives. President Xi Jinping has consistently promoted the vision of a community with a shared future for humanity, with an emphasis on collective action toward sustainable global development. As part of this vision, China has introduced initiatives such as the Belt and Road Initiative and the GDI, which aim to support countries in achieving sustainable development goals through enhanced cooperation. By aligning its WTO position with these initiatives, China is demonstrating its commitment to fostering inclusive global economic growth, reinforcing the idea that trade can be a tool for equitable development rather than a zero-sum game.

Moreover, this decision should not be seen as an abandonment of China’s status as a developing country. While it voluntarily forgoes additional SDT provisions, China continues to identify itself as part of the Global South and maintains its development status within the WTO. In practice, this means that China will continue to benefit from the SDT provisions already embedded in current WTO agreements, including those in the Agriculture Agreement, which allow it more flexibility in domestic support policies relative to developed economies. Similarly, China retains its right to enter into preferential trade arrangements with other developing countries under WTO rules. These rights are not being relinquished as part of the pledge, and China will continue to advocate for the legitimate rights of developing members in WTO discussions.

China’s pledge also brings a degree of clarity and stability to the future of global trade negotiations. At a time when the multilateral trading system is facing significant challenges, China’s decision helps lower resistance in the WTO negotiations on SDT. This, in turn, strengthens China’s ability to confidently uphold the legitimate rights and interests of developing members. Moreover, it reinforces the role of China’s own development and opening up in delivering benefits to all WTO members. In doing so, China’s stance contributes to curbing unilateralism and trade protectionism, reinforcing a more stable and cooperative global trading?environment.

 

The author is a professor and associate dean at the School of International Trade and Economics, University of International Business and Economics in Beijing.

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