China to drop developing-country status in WTO to spur reform

BEIJING — China said it will no longer seek the developing-country designation at the World Trade Organization, a move aimed at bolstering the global trading system as tariff actions by a major trading partner and other protectionist moves test the rulebook.

Commerce Ministry officials said the change is meant to reinforce WTO reform efforts and keep the body functioning amid growing concerns about its effectiveness. They did not name any country specifically.

The change would mean China would no longer be eligible for the designation’s special advantages, such as reduced market-opening obligations and longer transition periods.

Ngozi Okonjo-Iweala described the move as 'major news key to WTO reform' and thanked Chinese leaders in a post on X.

Premier Li Qiang announced the change in a speech in New York on Tuesday at a China-organized development forum during the annual session of the UN General Assembly.

China remains a middle-income country, and officials emphasized it remains part of the developing world. Yet Beijing has become a major lender and provider of technical assistance to other countries, often through large Chinese state-owned companies building roads, railways, dams and other projects abroad.

Analysts said the move could influence WTO negotiations and the pace of reforms, signaling Beijing’s willingness to rework how developing-country status is treated within the global trading system.