President Trump declares not to recognize China as a developing country
Trump asked the WTO to update its rules within 90 days and warned that if it did not do so, the US would stop recognizing some countries as developing countries.
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US President Trump at the White House on June 13. Photo: AFP. |
The World Trade Organization (WTO) uses "an outdated classification between developed and developing countries, allowing some members to gain unfair advantages," US President Trump said in a memorandum on July 26.
If there is no "substantial progress" to reform WTO rules within 90 days, Washington will no longer recognize as developing any WTO member that "incorrectly claims to be a developing country, taking advantage of flexibilities in WTO rules and negotiations."
While the statement points to many countries that benefit from this classification, the US is primarily targeting China. “The United States has never accepted China’s self-identification as a developing country,” the memo reads, noting that China’s gross domestic product (GDP) is the second largest in the world, behind only the US.
"China and too many other countries continue to claim developing country status, allowing them to enjoy the benefits that come with that designation and make weaker commitments than other WTO members," Trump wrote.
Countries considered developing by the WTO have longer time limits to implement free trade commitments and the ability to protect some domestic industries and maintain subsidies.
Xinhua published an editorial last year citing reasons why China remains a developing country, including low GDP per capita, uneven development between regions within the country, and many people in rural areas still living below the poverty line.
