China gives up preferential WTO trade treatment


BEIJING: China said on Wednesday (Sept 24) that it will no longer make use of a special regulation of the World Trade Organisation (WTO) reserved exclusively for developing countries, reported German Press Agency (dpa).

The change highlights China's commitment to supporting the multilateral trading system with concrete measures, China's chief international negotiator, Li Chenggang, said in Beijing.

The so-called Special and Differential Treatment of the WTO benefits developing countries, allowing them, for example, to impose higher tariffs or granting them more time to implement agreements.

Although China is the world's second-largest economy, the communist leadership in Beijing insists on China's self-declared status as a developing country. The United States has been criticising this for years.

While the People's Republic generates significant economic output, its per capita income remains relatively low.

China had already previewed the decision on Tuesday. On the sidelines of the United Nations General Assembly in New York, Prime Minister Li Qiang presented China as a "responsible major developing country".

The announcement comes just days after a phone call between US President Donald Trump and Chinese President Xi Jinping. Observers see this as a signal to Washington amid the ongoing trade dispute between the two major powers, as well as to other regions in Asia, South America or Africa, where China has been redirecting its exports for months due to the trade conflicts.

The rules-based multilateral trading system is currently facing significant challenges, said Li. The trade and tariff war initiated by "a certain country" has harmed the interests of WTO members, seriously disrupted global trade and created uncertainty for global development, he said.

The US has imposed tariffs on a vast number of its trading partners, resulting in worldwide criticism. - Bernama-dpa

 

 

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