China Ends Trade Privilege Backed Since 2001

China announces that it is giving up some of its privileges at the WTO. This move, described as “major” by the organization’s director-general, Ngozi Okonjo-Iweala, reshuffles the cards of global trade. Made by Li Qiang himself, this decision marks a strategic shift for Beijing authorities, long accused of unfairly benefiting from multilateral rules.

Beijing gives up a major lever of commercial competitiveness

During a speech given this Tuesday, September 23, on the sidelines of the United Nations General Assembly, Li Qiang, Chinese Premier, officially announced that China was ready to give up the “special and differential treatment” (SDT) planned for developing countries under the World Trade Organization, while the country continues its monetary offensive against the dominance of the dollar.

This declaration was hailed as a “major event” by Ngozi Okonjo-Iweala, WTO director-general, who stated on X : “this is the culmination of many years of hard work, and I would like to congratulate the Chinese leaders for their action in this area!”.

Sharing major news key to WTO reform! Premier Li Qiang of China has just announced that China will no longer have access to Special and Differential Treatment in new WTO Agreements. This announcement was made at a meeting convened by China on its Global Development Initiative on… pic.twitter.com/y0IT3exgaL

— Ngozi Okonjo-Iweala (@NOIweala) September 23, 2025

Such a decision constitutes a break with the hardline stance defended by Beijing since its accession to the WTO in 2001.

This change of attitude implies for China giving up several key mechanisms that have supported its accelerated industrialization strategy. As a country benefiting from SDT, China had until now several structural advantages in global economic competition, as listed by Thomas Deconstanza, researcher at the Skema Publika think tank :

• Extended deadlines to apply certain WTO rules, allowing it to delay the alignment of its economic policies ;

• The possibility to massively subsidize its strategic industries, notably in high-tech sectors such as electric vehicles ;

• Eased access to developed markets, such as the European Union or the United States, without being subject to certain countermeasures imposed on more advanced economies.

These measures, now being abandoned, constituted a foundation of Chinese trade policy. Their removal signals a major strategic inflection, in a context where Beijing seeks to redefine its role in international institutions without losing the levers of its economic influence.

A diplomatic turnaround by China under international pressure

While this decision may seem voluntary, it comes in a context of strong diplomatic tensions and increasing accusations against China over several years.

The turning point dates back to Donald Trump’s first term, who in 2017 denounced an “abusive” use of multilateral trade rules by Beijing, reminding that China had been the second-largest global economy by total GDP since 2010.

This criticism has since been echoed and intensified by several powers, notably the European Union, South Korea, Japan, and Australia, which consider it unjustified for an actor of this magnitude to continue to benefit from favored treatments reserved for low-income countries.

In response, Beijing has gradually softened its position. As early as July 2024, China, a member of the BRICS alliance, hinted that it could give up SDT at the next negotiations on reforming the organization.

Nevertheless, China will not give up its developing country status, considered “non-negotiable”. This maintenance is justified, according to its authorities, by internal socio-economic inequalities, notably a still low GDP per capita and lagging rural areas in terms of development. The abandonment of SDT is therefore presented as a strategic compromise, a gesture of openness without compromising its overall positioning.

Will this announcement be enough to defuse increasing trade tensions, especially with the United States, or does it simply open the way to a temporary rebalancing of power relations within the WTO? For observers, by loosening the grip of international criticism, China is seeking to take back the initiative in future negotiations. However, the tangible consequences of this withdrawal, on its subsidized industries, global value chains, or upcoming regulations, remain to be measured.