Viw Magazine

Men's Weekly

.

  • Written by Henry Gao, Associate Professor of Law, Singapore Management University
President Trump and Australia's Prime Minister Scott Morrison insist it matters whether China is classified as "developed" or "developing" in the World Trade Organisation matters. It may not. Shutterstock

Whether China is a “developing” or a “developed” country for the purposes of the World Trade Organisation matters a lot to the US president.

President Donald Trump ignited a new front in the US-China trade war in July by tweeting that the world’s richest nations were masquerading as developing countries to get special treatment.

They were “cheating”, according to Trump.

He directed the US Trade Representative to “use all available means to secure changes” at the WTO.

Then Australia joined in. While in the United States, Prime Minister Scott Morrison referred to China as a “newly developed economy”, and backed Trump, saying that “obviously, as nations progress and develop then the obligations and how the rules apply to them also shift”.

China is digging in. It hasn’t resiled from a statement by its commerce ministry spokesman Gao Feng in April:

China’s position on WTO reform has been very clear. China is the largest developing country in the world.

But what’s at stake? In practical terms, almost nothing. Trump and Morrison are demanding something that would give them little.

What does “developing” even mean?

In the WTO, developing countries are entitled to “special and differential treatment” set out in 155 rules.

However, none of those rules define what a “developing country” is.

Instead, each member is able to “self-designate”, subject to challenges from other members.

Being recognised as a developing country was one of the three key principles China insisted on when negotiating to join the WTO in 2001.

It faced resistance. Several members cited “the significant size, rapid growth and transitional nature of the Chinese economy”.

In response the WTO took what it called a “pragmatic approach,” meaning that China got hardly any of the special treatment that would normally be accorded to a developing country.


Read more: Vital Signs. Blame Trump, not China for the looming trade and currency war


For example, under the Uruguay Round of tariff reductions that applied to developing countries already in the WTO, China would have only needed to cut its average industrial tariff from 42.7% to 31.4%. Instead, it agreed to cut it to 9.5%.

Similarly, it agreed to cut its agricultural tariff from 54% to 15.1%, instead of the 37.9% that would have been required had it already been in the WTO. These put its commitments on par with those of developed rather than developing countries.

On some issues, China’s commitments far exceeded those of even developed countries. For example, it agreed to eliminate all export subsidies on agricultural products, an obligation that developed countries were only able to accept 14 years later.

It also undertook to eliminate all export taxes, which are still allowed under WTO rules and still widely used by many governments.

Many of China’s WTO commitments were imposed only on it or modified the general rules to either impose heavier obligations on it or confer less rights on it.

Contrary to popular belief, China has received hardly any of the benefits that accrue to developing countries when it became a WTO Member, other than the ability to use the title “developing country”.

It’s more about identity than benefits

After its accession, China acted as a member of the developing country group and pushed hard for its interests. In 2003 it joined India and Brazil in pushing developed countries to reform their agricultural trade policies while retaining flexibility for developing countries, a push that has yet to achieve success.

In the meantime, it enjoys little preferential treatment for itself, partly because it has eschewed special benefits, partly because most of the transition benefits that were available to it have expired, partly because some of the provisions available to it are essentially voluntary on the part of the country offering them, and partly because many of the benefits available to developing countries are not available to developing countries with large export shares.


Read more: Barley is not a random choice – here's the real reason China is taking on Australia over dumping


At times it has actively forgone important benefits, such as by not invoking its right to receive technical assistance under WTO’s Trade Facilitation Agreement.

However, on some other issues, the sheer size of China has made it difficult to accommodate China’s claim for developing country treatment. One example is the negotiation on fisheries subsides, which would not be able to move without substantial commitments from China, which operates one of the largest subsidies in the world.

Identity matters to China

In its position paper on WTO Reform, China says it “will never agree to be deprived of its entitlement to special and differential treatment as a developing member”.

At the same time, it says it “is willing to take up commitments commensurate with its level of development and economic capability”.

It remains far less developed than traditionally developed countries. In purchasing power terms, its standard of living is about one-third of that in the United States.

Although not practically important in terms of its obligations under the WTO, its developing country status is useful to it in other ways, giving it the opportunity to gain meaningful advantages in other international organisations such as the Universal Postal Union.

It costs the rest of the world little to accommodate China’s wish to be described as a developing country. If Trump and Morrison got what they wanted, they would find little had changed.

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

Authors: Henry Gao, Associate Professor of Law, Singapore Management University

Read more http://theconversation.com/myth-busted-chinas-status-as-a-developing-country-gives-it-few-benefits-in-the-world-trade-organisation-124602

Must-Have Features in a Modern 2 Bed Caravan

The 2 bed caravan segment has evolved significantly in recent years, with modern layouts offering a level of comfort and functionality tha...

Why Tax Accountants Melbourne Help Individuals and Businesses Stay Compliant

Tax regulations can be complex and constantly evolving, making it challenging for individuals and businesses to manage their financial oblig...

Why Rainwater Tanks Are an Effective Solution for Sustainable Water Storage

Water conservation has become an increasingly important priority for households and businesses around the world. As populations grow and env...

Why Offroad Caravans Are the Ultimate Choice for Long-Distance Adventure Travel

Travelling long distances while maintaining comfort and independence is a goal for many adventure enthusiasts. Caravanning has become an inc...

Furnishing for Families Without Losing Style

Designing a family home can feel like a constant negotiation between practicality and aesthetics. On one hand, you want rooms that can han...

Decorating in Stages: A Smarter Way to Build a Home You Love

There is a lot of pressure to make a home look “finished” as quickly as possible. Between inspiration images, showroom displays and so...

Why Building Inspections Gippsland Are Essential for Property Buyers

Purchasing a home or investment property is an exciting milestone, but it also involves careful consideration and due diligence. One of the ...

Precision and Practicality: How Mini Excavators Support Modern Australian Projects

Lightweight, agile, and increasingly sophisticated, mini excavators have become a familiar presence across modern construction sites. Feat...

Choosing the Right Boat for Lakes and Rivers is About What’s Under the Water

Ready to hit the water and enjoy a boating lifestyle? Great! But not just any boat will do. You need to be equipped with the knowledge to ma...

How Fat Freezing Melbourne Treatments Help Reduce Stubborn Body Fat

Achieving a well-balanced body shape often requires regular exercise and healthy eating habits. However, many individuals still struggle w...

Why Childcare Cleaning Is Essential for Safe and Hygienic Early Learning Environments

Childcare centres provide important environments where young children learn, play, and develop social skills. Because these spaces are use...

Understanding Root Canal Treatment Melbourne And How It Saves Natural Teeth

Dental pain can disrupt daily life and make even simple activities uncomfortable. When tooth decay or infection reaches the inner part of ...

Why an NDIS Provider Plays a Vital Role in Supporting People With Disabilities

Access to the right support services can significantly improve the quality of life for people living with disabilities. Across Australia, ...

Key Terms in Commercial Leases Every Melbourne Business Should Understand

Signing a commercial lease is a significant commitment. However, many business owners focus on the rent figure and the lease term without ...

Why a Buyers Agent Adelaide Helps You Navigate the Property Market With Confidence

Buying property is one of the most significant financial decisions many people make. Whether purchasing a home to live in or investing in re...

What Makes a Successful Law Firm Website in 2026

In 2026, a law firm’s website is no longer just a digital brochure—it is one of the most important business development tools a legal ...

Why Every Modern Law Firm Needs a High-Performance Website

In today’s digital-first world, a law firm’s website is often the very first point of contact between a potential client and the legal p...

The Importance of Safe Sanitary Waste Disposal in Commercial Spaces

For facility managers, employers, and business owners, the provision of washroom amenities is more than a convenience—it is a critical int...

Why Brisbane Retailers Need Custom Security Solutions for Modern Retail Risks

A one-size-fits-all approach rarely works for something as nuanced and challenging as retail security. In Brisbane alone, there are differ...

Why Children Who Learn to Save Early Develop Stronger Financial Habits

The transition from understanding the value of a physical coin to managing a digital balance is a fundamental rite of passage for the next...