Elizabeth Morgan | China supports the multilateral system

IN THE lead-up to the United Nations General Assembly (UNGA), the concern was and continues to be whether the multilateral system created 80 years ago will hold or whether it will disintegrate. It was interesting to note that most countries were signalling support for multilateralism. A country signalled its willingness to lead.

In this regard, the speech delivered by Premier Li Qiang of the People’s Republic of China at the UNGA General Debate in September was one to note. It sent the message that China was ready to assume an important leadership role in the multilateral system. The premier stated that “China is ready to take coordinated and effective actions together with all sides to offer more concrete solutions and promote world peace and development”.

In closing, the premier told the Assembly that “Going forward, China will continue doing its best to contribute to global peace and development. A steadily developing and highly open China will bring more fresh opportunities to countries around the world. A China that bears in mind the greater good of humanity and stands ready to take up responsibilities will bring more positive energy into the world. China hopes to work with the rest of the world to uphold the ideals of the UN, carry forward the spirit of multilateralism, actively implement the four major global initiatives, advance toward the lofty goal of building a community with a shared future for humanity, and make our world a more harmonious and beautiful place”.

CHINA’S DEVELOPMENT STATUS DECISION

After years of discussions in the World Trade Organization (WTO) on China’s development status, on September 23, China announced that it would no longer seek Special and Differential Treatment (SDT) in future WTO negotiations. The divisive development status debate in the WTO was addressed in this column on October 23, 2019.

The September 23 decision meant that China would no longer utilise the flexibilities in WTO agreements available to developing countries. This was an important issue for the USA and other developed countries. This is an important decision for China.

SUPPORTING GLOBAL TRADE

At the G20 Trade and Investment Ministers’ Meeting held in Gqeberha, South Africa, October 10-11, it is reported that China further emphasised its support for the multilateral system demonstrating that it intends to be a leading global player.

China’s international trade representative, Li Chenggang, of the Ministry of Commerce stated that “while pursuing its own development, China is also actively contributing to global economic growth. He called on all parties to uphold the multilateral trading system and free trade, oppose unilateralism and protectionism, avoid trade restrictions, remove green trade barriers, and leverage their comparative advantages to jointly support developing countries, injecting impetus to green industrialisation and sustainable development”.

The G20 Trade and Investment Ministers were preparing for the G20 Summit to be hosted by South Africa in November. The US president is unlikely to attend this summit from the indications to date.

14TH WTO MINISTERIAL CONFERENCE

The 14th WTO Ministerial Conference (MC14) is scheduled to be held in Yaoundé, Cameroon, from March 26-29, 2026.

Having resumed work in September, the representatives at the WTO should now be fully engaged in preparations for MC14.

Of course, the US’ unilateral position on tariffs continues to create uncertainty in global trade. In addition to all its other tariffs being applied on all WTO members, the US has imposed further high tariffs on Brazil and India. Recently, President Trump announced his intention to impose an additional 100 per cent tariff on goods imported from China because of actions taken by China on the export of rare earth minerals. This further threatened to again escalate trade tensions between the US and China. Presidents Trump and Xi Jinping are scheduled to meet at the upcoming Asia-Pacific Economic Cooperation Summit in South Korea. It is to be seen what this meeting will yield.

A bit of news from the WTO recently is that the Fisheries Subsidies Agreement has entered into force.

It is not clear how much progress is being made as WTO members prepare for MC14. China, however, has signalled its support for the multilateral trading system.

CLIMATE CHANGE

There was a climate change conference in New York during the UNGA, and during this meeting, for the first time, China announced its commitment to an absolute target for cutting its emissions. China is among the world’s biggest carbon emitters.

President Xi Jinping speaking by video said that China would reduce its greenhouse gas emissions across the economy by seven to 10 per cent by 2035, while “striving to do better”. China is also focusing on developing green technology. It is reported that China is taking the lead on the development and use of renewable energy.

So, China will be at the UN Conference on Climate Change, COP30, in Brazil in November.

China, like the USA, is a significant trade and development partner. We need to be aware of what they are doing and saying.

Elizabeth Morgan is a specialist in international trade policy and international politics. Send feedback to columns@gleanerjm.com