TWN Info Service on WTO and Trade Issues (Oct26/09)
9 October 2026
Third World Network

Trade: China lends full support to WTO reforms
Published in SUNS #10529 dated 8 October 2026

Geneva, 7 Oct (D. Ravi Kanth) -- China has seemingly thrown its weight behind advancing World Trade Organization reform for accomplishing "the goal of promoting universally beneficial and inclusive economic globalization," at a time when some major industrialized countries appear to be attempting to erect barriers through unilateral trade measures while turning the rules-based WTO on its head, said people familiar with the development.

During its intervention on the discussion on WTO reforms, which were severely challenged by many developing and least-developed countries on 5 October, China said that it "supports updating WTO rules while upholding the WTO fundamental principles."

In a written submission following its participation in the September reform discussions and a review of the facilitators' reports, Chinese trade envoy Ambassador Li Yongjie emphasized several points.

Commenting on development - a highly divisive area of WTO reform - China said that "discussions need to go beyond SDT [commonly referred to as special and differential treatment or S&DT]," arguing that "an issue-based approach covering both longstanding issues and emerging ones will help anchor our discussions in concrete development needs."

While the United States has promoted the curtailing of S&DT by abolishing the treaty-based self-designation framework for developing countries, China's issue-based approach "could be useful to draw lessons from past experiences of needs assessments, and better incorporate this approach into WTO's technical assistance framework."

Notably, China reportedly renounced its entitlement to S&DT in 2025, insisting that it will not use the provisions specified in current and future trade negotiations.

Regarding the controversial "level playing field" (LPF) issues - conceived by the United States, the European Union, and Japan to primarily target China's alleged subsidies for state-owned enterprises and excess capacity - China said that it "has listened carefully to the diverse concerns raised by Members, including long-standing asymmetries in WTO rules."

China said it "welcomes discussing concrete concerns of membership", while advocating "safeguarding the fundamental principles and strengthening global trade governance of fair competition."

Beijing stated that it is ready to "explore updating the SCM [Subsidies and Countervailing Measures] Agreement, enhancing transparency, and strengthening coordination on industrial policies."

However, China has seemingly remained silent on addressing agricultural subsidies, as demanded by Australia, Brazil, and several farm-exporting countries, said a trade official who asked not to be quoted.

On industrial subsidies and support for state-owned enterprises, China said that "government interventions exist across economies, and discussions ought to focus on concrete government actions and their actual effects."

China cautioned that "broad labels such as Non-Market Economy, overcapacity or over-concentration cannot serve as a basis for rule-making," in a clear criticism against claims made by the US, the EU, and Japan.

It warned that "discussions cannot be based on presumed prejudice against particular form of ownership," indicating that while it "supports discussions on transparency, [it] is not fully clear about the idea of it being "an entry point"."

More importantly, Beijing cautioned "against oversimplifying the issue as merely a matter of willingness or capacity."

According to China, "The level of transparency required and the associated demand for resources will inevitably depend on the scope of application, which is intrinsically linked to the substantive disciplines."

On decision-making by consensus, as enshrined in paragraph one of Article IX of the Marrakesh Agreement, China proposed further discussions focusing on "the following areas: A. Increasing flexibility to facilitate consensus in negotiations; B. Enhancing the role of plurilateral agreements as a building block for multilateralism, and C. Strengthening political guidance to foster consensus."

China's position on decision-making appears to be somewhat close to that adopted by several industrialized countries, said a trade envoy who asked not to be identified.

On restoring the two-tier dispute settlement system, China said it "also supports the informal consultation led by the DSB Chair towards restoring the functioning of the dispute settlement system." +