Interpretation of China's Position Paper on WTO Reform under the Current Situation by the Head of the World Trade Department of the Ministry of Commerce

Recently, China submitted its position paper on WTO reform under the current situation to the WTO. The head of the World Trade Department of the Ministry of Commerce interpreted the position paper.

1、 Background of Submission of Position Paper

The reform of the World Trade Organization is a key issue in the current global economic governance field. The World Trade Organization initiated the necessary reform process in June 2022 and has made some progress in areas such as mechanism operation so far. Faced with the impact of unilateral tariff measures on the global economic and trade order and the abuse of decision-making mechanisms by some members to obstruct multilateral negotiations, WTO members will launch deep level reform consultations in the second half of 2025, with the aim of addressing urgent issues such as operational difficulties and rule deficits faced by the WTO based on previous work. To better support the reform process, submitting reform proposals has become a natural choice for many WTO members.

China is a staunch defender and active contributor to the multilateral trading system, supporting the World Trade Organization to play a greater role in global economic governance. China took the lead in proposing necessary reforms to the World Trade Organization and released the "China Position Paper on WTO Reform" in 2018. In 2019, China submitted the "China Proposal on WTO Reform" to the WTO, making positive contributions to the initiation and promotion of necessary WTO reforms. In response to the severe challenges and development needs faced by the current multilateral trading system, China has submitted a position paper to the World Trade Organization, fully considering its own demands and the concerns of other members.

2、 The main content of the position paper

The position document includes two parts: the overall position and the work proposal.

The overall stance introduces China's overall understanding of the World Trade Organization and its basic attitude towards WTO reform. The position paper points out that the World Trade Organization provides an open, non discriminatory, stable, and predictable institutional guarantee for economic globalization. The multilateral trading system has been impacted by unilateral tariff measures, and although trade tensions have escalated, WTO rules and mechanisms remain important barriers to resist trade turbulence; Unilateralism and protectionism are not the solution to the problem. All parties should respond to the practical challenges brought by economic globalization through multilateral cooperation, domestic reforms, and inclusive and mutually beneficial development. The position paper emphasizes that economic globalization is an unstoppable historical trend, and the reform of the World Trade Organization should aim to strengthen multilateral trade governance, uphold the cornerstone role of most favored nation treatment in the WTO rules system, and place development at the center of the WTO reform agenda; We need to address long-standing unresolved issues while exploring the development of new rules for the future.

The work proposal section proposes China's priority for WTO reform. The position paper points out that members should develop a gradual and structured WTO reform work plan at the 14th Ministerial Conference of the World Trade Organization, establish a specific timetable, and promote the expansion of reform from procedural matters to substantive issues through member driven dialogue and initiatives. The position paper emphasizes that the work plan should start with priority issues such as clear decision-making mechanisms, development, and fair competition. On the issue of decision-making mechanisms, it is recommended to make flexible decisions while respecting the principle of consensus through consultation, setting balanced and inclusive standard conditions, promoting flexible multilateral initiatives, and solving the problem of difficult decision-making by members leading to difficult rule making. On development issues, it is recommended to implement special and differential treatment clauses in a more precise and effective manner without changing the self identification practices of developing members, and encourage them to seize future opportunities in industries and trade such as digital transformation, green transformation, and artificial intelligence. On the issue of fair competition, we support discussing government measures that distort international trade, advocate enhancing mutual trust among members through increased transparency, and demand respect for the different economic systems and development stages of members. In the reform of the dispute resolution mechanism, it is advocated to restore a dispute resolution mechanism that is accessible, complete, and well functioning to all members.

3、 The main characteristics of the position paper

In terms of nature, the position paper is the first comprehensive and systematic policy document submitted by China to the World Trade Organization since the launch of the WTO reform process, which elaborates on the WTO reform position. This is a concrete action taken by China to implement global governance and development initiatives, and an important measure for China to unite the vast majority of members to uphold the multilateral trading system. The position paper reflects China's reform demands and the concerns of other members, which is in line with China's identity as a responsible developing country and responds to the expectations of all parties, especially developing members, for China to propose reform plans.

In terms of content, the position paper is based on multilateralism, focuses on development, and faces the future. It systematically elaborates on China's overall principles and action suggestions for WTO reform under the current situation. In terms of multilateralism, the position paper elaborates on China's positive attitude towards supporting inclusive economic globalization and maintaining the multilateral trading system, and emphasizes the importance of further promoting WTO reform under the current situation. In terms of focusing on development, the position paper points out that development should be placed at the center of the reform agenda, helping developing members seize growth opportunities such as digital economy, green transformation, and artificial intelligence. As for the future, the position paper emphasizes the need to discuss government measures that distort international trade, respect the different economic systems and development stages of members, strive to seek consensus on fair competition, and create an international trade rule environment that is more in line with the needs of industrial development.