Lan Qingxin and Tian Geng: WTO reform, China's position is an important support

Recently, China submitted a position paper to the General Council of the World Trade Organization (WTO) on the reform of the WTO under the current situation, systematically elaborating on China's overall position and work proposals on WTO reform. In the context of increasingly complex global economic governance, China's move not only expresses firm support for accelerating the reform of the World Trade Organization, but also contributes Chinese wisdom and solutions to its specific reform direction and agenda setting.

Since its official establishment in 1995, the World Trade Organization has always adhered to the basic direction of trade liberalization, and its membership has continued to expand, providing a solid institutional guarantee for promoting rapid growth in international trade and global inclusive development. Between 1995 and 2024, the scale of global trade in goods and services has grown more than fivefold, with 166 members establishing close and mutually beneficial economic ties through trade. Over 600 trade disputes have been effectively accepted, timely avoiding many potential risks that threaten the international trade order. Trade liberalization has also significantly increased the proportion of developing countries in global trade. By 2024, the proportion of developing economies in global exports of goods and services has reached 47% and 33% respectively, driving significant progress in global poverty reduction and significantly reducing the proportion of people living in extreme poverty.

However, the World Trade Organization also faces urgent reform pressure. On the one hand, trade protectionism is increasingly hindering close international economic and trade cooperation, and global trade governance urgently needs the contribution of the multilateral trading system. At present, the international economic environment is becoming increasingly complex, and weak economic growth and rising unemployment rates have become common problems faced by many countries. Some developed countries choose to adopt a "beggar thy neighbor" approach, by setting unfair tariffs, abusing export control measures and a series of trade and non trade barriers, transferring their own economic development problems to other countries, which has a significant negative impact on the development of economic globalization and trade liberalization.

On the other hand, global economic development is also placing higher demands on the formulation of WTO rules and mechanism arrangements. From climate change and resource scarcity that plague global development, to the huge gap in development between North and South countries, and to the accelerated innovation of emerging digital technologies, the prospects for global economic development present both opportunities and challenges. However, for some key and emerging issue areas, the World Trade Organization has been unable to form effective unified rule arrangements, and the suspension of the appellate body has limited the role of the dispute settlement mechanism. The relevance of the World Trade Organization in the global trading system is constantly weakening, and the global trade pattern and value chain are facing the threat of returning to the old path of developed countries occupying the global core position and developing countries relying on the periphery.

In this context, China's firm stance is a "booster" for the WTO to strengthen its confidence in reform. China is a firm defender and active contributor to the multilateral trading system. In the reform of the World Trade Organization, it has always adhered to true multilateralism, guided by inclusive economic globalization, and prioritized clear decision-making mechanisms, development, and equity in reform issues. It has put forward practical solutions for the current formulation of WTO rules and mechanism arrangements.

China's position has broad representativeness. Firstly, China's position represents the voice of the vast number of developing countries. China has always insisted that the reform of the World Trade Organization should be based on the principle of consensus through consultation, respecting the current economic development status and flexible decision-making of all members. By setting balanced and inclusive standard conditions, implementing special and differential treatment clauses accurately and effectively, promoting the better integration of developing countries into the multilateral trading system, and promoting pragmatic cooperation among all members. Secondly, China's position represents the voice of the vast number of members who support and uphold multilateralism. The purpose of China's adherence to WTO reform is to rebuild mutual trust among members, restore the authority, effectiveness, and relevance of the dispute settlement mechanism in handling trade conflicts among members, and create a stable and predictable international trade environment for all members. Thirdly, China's position represents the voice of the vast number of members who collectively face the new prospects of economic development. Against the backdrop of emerging strategies and the continuous release of new economic development potential in future industries, China insists that the World Trade Organization should fully leverage the important role of the multilateral trading system, improve relevant international rules, and take into account the possible distortion effects of member rules on government subsidies and industrial policies on the international trade environment, creating a fair and transparent trade environment.

China's stance is also pragmatic and constructive. China is a faithful follower of multilateral trade rules and has always opposed unilateralism and protectionism. In the face of the difficulties faced by the WTO dispute settlement mechanism, China actively collaborates with numerous members to build consensus, promote the repair and improvement of relevant mechanisms, and make every effort to achieve practical results in multiple rounds of ministerial meetings, promote the implementation of important agreements such as trade facilitation, and defend the authority and effectiveness of the WTO with practical actions.

China is a representative of the common interests of developing countries, always placing development issues at the core, committed to narrowing the development gap between the North and the South, firmly safeguarding the legitimate rights and interests of developing members, actively strengthening coordination and cooperation with other developing members, consolidating common positions, and helping developing members, especially the least developed countries, to enhance their ability to participate in the multilateral trading system through various means such as aid for trade, making the reform results more inclusive.

China is still an active builder and leader in the practice of WTO reform. China has submitted multiple comprehensive position papers so far, consistently advocating for inclusiveness and high standards in rules, deeply participating in rule negotiations in emerging fields such as digital trade and green trade, advocating for governance frameworks that are in line with the common interests of all parties, and setting an example for reform through its own open practice. At the same time, China continues to expand market access, continuously optimize the business environment, and organically integrate international trade rules into domestic governance, steadily transforming from a receiver of rules to an important shaper of rules. All of the above are providing practical and feasible Chinese solutions for reform. (The authors are the director and professor of the BRICS Research Center at the University of International Business and Economics, and a doctoral student at the School of International Business and Economics)