What China's decision to forgo seeking new SDT in WTO means

Chinese Premier Li Qiang announced at a UN General Assembly event on Tuesday that China will no longer seek new special and differential treatment (SDT) in ongoing or future World Trade Organization (WTO) negotiations, a landmark gesture in global trade governance.

Experts emphasize that this does not mean China is giving up its developing country status at the WTO. Rather, it reflects China's resolve to shoulder responsibilities commensurate with its stage of development and economic growth, while demonstrating a strong commitment to multilateralism.

What is SDT?

The WTO currently has 166 members, with 22 more countries and regions seeking to join. Under WTO rules, developing members are entitled to SDT, a set of rights and flexibilities designed to protect their development interests. SDT allows poorer countries more time, flexibility or assistance when implementing WTO commitments.

For example, developing countries may take longer to implement tariff reductions, make shallower cuts to tariffs or subsidies, and enjoy preferential market access from developed members.

According to WTO Secretariat data, current WTO agreements contain 157 SDT provisions, nine of which apply exclusively to least-developed countries. However, being classified as a developing member does not automatically grant identical treatment to all; specific benefits depend on negotiation outcomes.

China's SDT reform

The WTO encourages developing members to advance reform and further opening up. As the world's largest developing country, China has gradually taken on greater responsibilities in promoting trade and investment liberalization and facilitation.

Since December 1, 2024, China has applied zero tariffs on all products from least-developed countries with diplomatic ties. On June 11, 2025, China announced plans to extend the same zero-tariff treatment to 53 African nations with diplomatic relations.

In WTO negotiations on issues ranging from domestic regulation of services trade to COVID-19 vaccine intellectual property waivers, China has played a constructive role by foregoing SDT, helping facilitate the conclusion of several agreements.

What giving up new SDT means for China

Cui Fan, a professor at the University of International Business and Economics, told CGTN that China is not abandoning all SDT. Rather, it will no longer seek new SDT provisions in WTO negotiations. He said that China's per capita GDP still lags far behind developed countries, so the premier's announcement does not change China's status as a developing country, which, he said, is determined under WTO rules through self-designation and its accession protocol.

"This commitment does not affect China's existing SDT rights under WTO agreements or its entitlements as a developing country under other international organizations and treaties, such as the World Bank or the Paris Agreement," Cui said.

He cited agriculture as an example: China enjoys an 8.5 percent de minimis flexibility for domestic support – higher than the five percent allowed for developed countries, but lower than the 10 percent generally granted to developing countries. "Existing arrangements like this will continue, which is crucial for safeguarding China's agricultural security," he added.

Impacts on the global trade system

WTO Director-General Ngozi Okonjo-Iweala welcomed Premier Li's announcement, saying it reflects China's commitment to a more balanced and equitable global trading system.

"It sends a strong signal of support for WTO reform and will help foster a more level playing field for all members," she said. "This move will undoubtedly energize discussions and help us work toward a more agile and effective organization for the 21st century."

Currently, the rules-based multilateral trading system faces serious challenges, with some countries repeatedly initiating trade and tariff conflicts, creating uncertainty and instability in global economic development. Li Chenggang, China international trade representative with the Ministry of Commerce and vice minister of commerce, said that in this context, China's decision demonstrates its firm commitment and responsibility as a major country, providing strong support for the multilateral system and steering global economic governance toward greater fairness.

Yang Shuiqing, an associate research fellow at the Chinese Academy of Social Sciences, said that China's decision offers a model for other rapidly developing economies. "It shows that countries can maintain developing country status and existing rights while gradually taking on greater international responsibilities according to their capacities," she said. "This helps sustain the WTO's vitality and promotes its reform toward greater fairness, inclusiveness and effectiveness."