China has announced its decision to give up the special and differential treatment under the World Trade Organization, and supports the multilateral trading system.

WTO: China says it will not change its developing country status but will give up "special and differential treatment"

AFP reported that for many years, the United States and Europe have been urging China, the world's second-largest economy, to give up this status (abbreviated as STD). This status allows developing countries more time to fulfill their commitments in the WTO. AP reported that according to WTO rules, developing countries can enjoy certain benefits, such as longer commitment periods and measures that help expand trade opportunities. The benefits of China's accession to the WTO include less strict requirements to open up the market for imported products, as well as longer transition periods to implement these opening measures. However, many developed countries, including the United States, believe that China, the world's second-largest economy, should no longer be included in this group enjoying preferential treatment.

A Chinese commerce official said on Wednesday that giving up the "special and differential treatment" that developing countries enjoy in the World Trade Organization (WTO) aims to boost the global trading system at a time when it faces tariff wars and protectionist measures taken by some countries to restrict imports. A Chinese commerce official emphasized that China is still part of the developing countries.

AP stated that they did not name the United States or Trump, but China has become an increasing source of loans and technical assistance for other countries in building roads, railways, dams, and other major projects, which are typically undertaken by large Chinese state-owned enterprises.

Reuters reported that a senior representative of China's delegation to the WTO in Geneva said that China will not change its developing country status, but in future WTO negotiations, China will give up the requirement for special and differential treatment.

Zhongshan Li Yihong, acting head of China's permanent mission to the WTO, told reporters on Wednesday that China's decision to give up the benefits obtained from its developing country status in the WTO indicates its "commitment to supporting the multilateral trading system."

WTO Director-General Ngozi Okonjo-Iweala posted a message welcoming China's statement, saying, "This is a significant statement in the context of WTO reform!" She considered it the result of years of hard work and congratulated Chinese leaders for their actions in this regard!

According to AFP, in the WTO, countries decide for themselves whether they wish to enjoy the status granted to developing countries. During the first term of US President Donald Trump in 2019, Brazil had previously expressed willingness to "begin to give up" this special treatment.

Zhongshan Li Yihong, acting head of China's permanent mission to the WTO, told reporters on Wednesday that China's decision would inject "positive energy" into the current discussions on WTO reform.

Previously, Washington had stated that meaningful reforms in the WTO were impossible unless China and other major economies gave up the special and differential treatment given to developing countries, as the US believes this gives developing countries an unfair advantage.

Original: www.toutiao.com/article/1844168061856776/

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