|
| World |
| China has taken the lead, it is up to the U.S. to follow | |
|
|
|
Premier Li Qiang meets with UN Secretary-General Antonio Guterres in the UN Headquarters in New York City on September 24 (XINHUA) When Premier Li Qiang announced that China would no longer request new Special and Differential Treatment (SDT) in future World Trade Organization (WTO) negotiations at the high-level meeting on the Global Development Initiative in New York on September 23, the global trading system shifted. This was not a small technical adjustment but a bold act of sacrifice, one that no other major economy has taken voluntarily. Beijing could have continued to claim SDT benefits, citing its still-modest per-capita income and significant regional disparities between coastal and inland provinces. No one would have forced China to abandon them. Yet China chose to forgo these benefits. That choice reflects not weakness but confidence, not retreat but leadership. It is also a direct challenge to the U.S. For years, Washington has complained that China’s claim to SDT privileges made WTO reform impossible. That complaint can no longer stand. The question now is whether America will rise to the occasion or reveal itself as the true obstacle to multilateralism. China's Sacrifice SDT is a core principle of the WTO. It provides developing countries with flexibility: higher tariffs, longer timelines for commitments, or targeted subsidies. These provisions are designed to give poorer nations the policy space to modernize. When China joined the WTO in 2001, SDT was essential. Its per-capita income was low, industries were still developing, and integration into global markets was incomplete. Even today, China could have continued to insist on these benefits. Its per-capita GDP remains far below that of advanced economies, and inequality persists between booming coastal provinces and less developed inland regions. No one would have criticized Beijing for continuing to claim SDT. Yet by giving it up voluntarily, China made a sacrifice that few expected, an act that demonstrates both responsibility and confidence in its ability to compete on equal footing. Confidence, Not Weakness Some may be tempted to interpret this decision as Beijing bowing to pressure. In truth, it reflects precisely the opposite: confidence. China’s industries, renewable energy, advanced manufacturing, telecommunications and digital platforms, have matured to a point where they no longer need special treatment. Beijing’s decision is a declaration of strength. China is ready to compete under the same rules as the world’s largest economies. This confidence is also strategic. By yielding voluntarily, China has positioned itself as a leader of WTO reform, not a reluctant participant dragged by others. It has taken a proactive step to strengthen the credibility of global institutions at a time when many are questioning their relevance. This is not just about trade. It is about global governance. Answering U.S. Criticism For years, Washington has used China’s SDT status as a political talking point. Successive U.S. administrations argued that it was unfair for the world’s second-largest economy to enjoy the same privileges as much smaller developing countries. American officials claimed that until China relinquished these benefits, WTO reform was impossible. Now, that excuse is gone. China has made the sacrifice Washington demanded. The burden now shifts to the U.S. Will America respond by embracing reform, restoring the WTO’s appellate body, and rolling back unilateral tariffs? Or will it continue to undermine the multilateral system even after Beijing has met its stated demands? If Washington fails to act, the world will see clearly where the real obstacle lies. China’s decision exposes the hollow nature of America’s complaints. The U.S. asked for sacrifice, China delivered. The next move is America’s. Remaining a Developing Country Critics may claim that by relinquishing SDT, China has abandoned its identity as a developing country. That is simply not true. China has made clear that it will continue to call itself a developing nation, even as it forgoes SDT benefits. This reflects reality. Its per-capita income is still a fraction of that in advanced economies. Vast regional disparities remain. Social challenges, from rural revitalization to demographic aging, are profound. More importantly, China has reaffirmed its alignment with the Global South. It remains firmly committed to South-South cooperation, from the Belt and Road Initiative to the Global Development Initiative. China will continue to stand with developing countries in their push for modernization, equity, and growth. The sacrifice of SDT does not sever these ties, it strengthens them. By showing that leadership means voluntarily yielding privileges, China has set an example for the Global South that solidarity and responsibility can go hand in hand. A Responsible Power For China, this step reinforces its global image as a responsible power. It is entirely consistent with Beijing’s vision of a community with a shared future for humanity. Leadership today requires more than advancing one’s own interests. It requires sustaining the systems that underpin global stability. By voluntarily setting aside benefits it is entitled to, China demonstrates that it values not only its growth but also the survival and fairness of the rules-based trading order. This choice marks a contrast with the U.S. Washington has often undermined the WTO, imposing unilateral tariffs, paralyzing the appellate system, and using trade policy as a blunt political weapon. By comparison, China has shown that it is prepared to strengthen multilateralism even when doing so requires sacrifice. A Pivotal Moment for the WTO WTO Director-General Ngozi Okonjo-Iweala rightly hailed China’s decision as “a pivotal moment.” The organization has faced years of crisis. The Trump administration’s tariffs and refusal to respect dispute rulings crippled its authority. Many doubted whether the WTO could survive. China’s move breathes new life into the system. It shows that the world’s second-largest economy still believes in multilateral rules. It demonstrates that reform is possible when countries act with vision. And it removes one of the most cited grievances against the WTO’s fairness. For the first time in years, momentum exists to strengthen the global trading order, if the U.S. chooses to seize it. The Challenge to America China has acted. Now the burden is squarely on the U.S. If Washington continues to block the WTO appellate system, impose unilateral tariffs, and pursue a zero-sum trade war, then it will be clear that the U.S., not China, is the real obstacle to reform. America must now decide: Will it follow through on its own rhetoric and work to revitalize the system, or will it cling to outdated grievances while the rules-based order collapses? This is not only a question of economics. It is a question of credibility. If the U.S. fails to match China’s sacrifice, its claims to global leadership will ring hollow. The author is president of AmericaChina Public Affairs Institute. He is also an honorary fellow of the Foreign Policy Association, senior advisor to the China-U.S. Exchange Foundation, executive council member of the Center for China and Globalization and visiting professor of the School of International Studies at Sichuan University Copyedited by G.P. Wilson Comments to dingying@cicgamericas.com |
|
||||||||||||||||||||||||||||||
|
