Item 2. Incorporation of the Investment Facilitation for Development Agreement into Annex 4 of the WTO Agreement – Draft Decision (WT/GC/W/927/Rev.3)

Thank you, Chair.

I would like to begin by expressing my sincere appreciation to outgoing colleagues for their contribution to the WTO and my best wishes for them in their new endeavors. As one of the newly arrived, I appreciate the warm welcome, and look forward to working closely and constructively with you all.

As to item 2, investment is the engine of economic growth. Global FDI has declined for the two consecutive years. Alarmingly, FDI inflows to developing economies have dropped to their lowest level since 2005, and uncertainty will further increase the obstacles to investment growth.

The IFD is an important component of the WTO’s development agenda and a key policy tool in WTO to support development. We support incorporation of IFDA into the WTO agreement by MC14 and urge those members still holding reservations to give sympathetic consideration to the request of many developing members and LDCs.

Last month, China hosted a ministerial workshop on IFDA attended by 29 representatives from 21 developing members. This event further enhanced understanding of the value of IFDA by members and many non-participants of IFDA indicated that they are now actively considering joining this initiative.

Let me conclude by sharing two comments from participants to the workshop. “The importance of investment facilitation cannot be underestimated.” “How to advance this issue in the WTO? It doesn't matter whether cats are black or white. The focus should be on the thing they catch.”

Thank you.

Item 4.1. WTO Reform – Report by the Facilitator

Thank you, Chair.

China thanks the facilitator for the report and the efforts.

China supports the current process led by the facilitator and commits our engagement. Through consultations with members, the facilitator tries to reflect the widest common denominator among members, with a view to moving the discussions forward step by step. Here, we need a pragmatic way how member-driven works in practice.

As reflected in the facilitator's consultation reports, almost all members reaffirm the importance of preserving the basic principles of the rules-based multilateral trading system in light of current challenges. These commitments form the basis of the reform. The purpose of the reform is to enable the WTO to better deliver rather than changing its fundamental principles.

I'll stop here. Thank you.

Item 4.2. Work Programme on Electronic Commerce – Report by the Facilitator

Thank you, Chair.

China appreciates the facilitator’s efforts on the E-Commerce Work Programme (ECWP), and welcomes the positive progress made so far.

Digital trade is the future. The development of digital trade requires a stable and predictable regulatory environment. China believes that the ECWP should be a prioritized issue on the way to MC14. We support extending both the moratorium and the work programme, as well as efforts to tackle emerging issues, such as AI, to ensure that the WTO is fit for the future.

We thank ACP for its valuable contribution on drafting text, and look forward to starting text-based discussion at an early date.

Thank you.

Item 6.  WTO Smooth Transition Support Measures in Favour of Countries Graduated from the LDC Category Pursuant to Paragraph 3 (WT/MIN(24)/34; WT/L/1189) – Communication from Djibouti on behalf of the LDC Group (WT/GC/W/967) – Request from the Gambia on behalf of the LDC Group

Thank you, Chair.

We thank the LDCs for submitting a revised proposal and thank Ambassador Petersen for his efforts in organizing the discussion of this topic.

It is regrettable progress has been less than desired. Nevertheless, China remains convinced that discussions on this matter should continue in the Sub-Committee on LDCs, and we call on members to engage in pragmatic and constructive dialogue to move the discussions forward.

Thank you.

Item 7. Rethinking the Rules-Based Multilateral Trading System – Request from Brazil

Thank you, Chair.

China appreciates Brazil for setting this agenda item and for the reflections Brazil has shared with us.

We are ready to engage in discussions on ideas to preserve the rules-based multilateral trading system, and in reforms that enable WTO to better deliver outcomes.

I will elaborate on China’s reflection in Item 8.

Thank you.

Item 8. Heightened Trade Turbulence and Responses from the WTO – Request from China

Opening Statement:

Thank you, Mr. Chair, for giving me the floor.

This is the fourth time this year that China has placed the item “Heightened Trade Turbulence and the WTO’s Response” on the Agenda of the General Council.

We do so because the global economic and trade turbulence continues, and even gets worse.

Since July, the scope of unilateral tariff measures continues to expand, and uncertainty in the global trade policy environment keeps rising. The WTO’s July Trade Monitoring Report noted that nearly one-fifth of global merchandise imports are now subject to increased tariffs; trade-restrictive measures more than tripled compared to 2024, and registered the highest since the establishment of the monitoring mechanism. The UNCTAD report released this September pointed out that one Member’s trade policies have disrupted supply chains and destabilized global markets. The World Trade Uncertainty Index has reached an all-time high.

Foreshadowed by the unilateral tariffs, “power-based” trade relations are gradually upending the rules-based multilateral trading system, as evidenced by recent bilateral trade deals. Some Members have been coerced into making unilateral trade concessions, affecting the legitimate rights and interests of third parties. They may even trigger a domino effect, further fragmenting the multilateral trading system.

Despite all these, the multilateral trading system has shown its resilience. According to WTO’s latest statistics, the share of global trade conducted on the MFN basis stood at around 72% as of September. At last month’s Public Forum and during the discussions on WTO Reform, both businesses and Members called for safeguarding the most-favoured-nation (MFN) principle and preventing further erosion of the core of the multilateral trading system.

This is precisely why China continues to propose this item on the agenda. For WTO to respond to the increased turbulence, we hope the discussions under this agenda could help members better reflect and explore ways on how to preserve the rules-based multilateral trading system.

First, we must enhance transparency. On the one hand, we should support objective third-party monitoring and analysis. As outlined in China’s communication to the July GC (WT/GC/272/Add.1), major international organizations, including the ITC, UNCTAD, OECD, IMF, World Bank and etc., have released reports monitoring and analyzing today’s turbulent trade landscapes, and also highlight the risks of allowing trade tensions to spread unchecked. We encourage the WTO Secretariat to continue compile and share relevant research findings with Members. On the other hand, we encourage relevant Members, especially major economies, to share information with WTO members on their bilateral trade agreements, especially with respect to the WTO-related provisions.

Second, we must reaffirm, in every possible way, members’ commitment to the rules-based multilateral trading system. Since the beginning of the year, various platforms such as the Friends of the System, the ASEAN Economic Ministers’ Meeting, the BRICS Trade Ministers’ Meeting, and the Shanghai Cooperation Organization Council of Heads of State, have issued initiatives or statements in support of the rules-based multilateral trading system. China believes members should continue to reaffirm this commitment together. These collective commitments will further cement the resilience of the multilateral trading system.

Last but not the least, we must take real and tangible actions to enable the WTO to deliver tangible results. Actions speak louder than words. In this regard, China stands ready to work with all Members to take firm and sustained actions, to uphold the multilateral trading system along the three tracks of stability, development, and reform.

Thank you.

Concluding Remarks:

Thank you, Chair. I will be very brief.

China thanks the members for sharing their thoughts under this item and relevant interventions under Item 7. We stand ready to engage constructively in the ongoing discussions, contributing to achieving substantive outcomes, including first at MC14, to safeguard the rules-based multilateral trading system.

Thank you.

Item 10. Member Conversations on Current Economic Issues – Request from the European Union and Mexico

Thank you, chair.

Industrial policy is an important and sensitive topic. In order to provide a safe space for discussions, the industrial policy dialogue was launched with the common understanding that this process is for purpose of information exchange and experience sharing in an informal way. No finger-pointing and no official position. Its informal nature gives members confidence on participation and encourages members to show openness and tolerance to sensitive subjects.

But if any specific session is brought to the GC, this may change the nature of the discussion and would raise members' concerns and apprehensions about their participation, and may lead them to adopt a more cautious stance to this mechanism. This is opposite to the very initial intention and not helpful to attract more members to join.

Item 13.  China's Position Paper Regarding Special and Differential Treatment in the WTO – Communication from China (WT/GC/274)

Opening Statement:

On September 23, during the United Nations General Assembly, Chinese Premier Li Qiang announced that, as a responsible major developing country, China will not seek new special and differential treatment in the current and future WTO negotiations. I would like to take this opportunity to provide some context for this policy announcement and then invite my capital colleague for further elaboration.

As a responsible developing country, China always recognizes its own responsibilities and makes contributions to global development to the best of its capability.

Since President Xi Jinping put forward the Global Development Initiative (GDI) at the UN General Assembly 4 years ago, the GDI mobilized over 23 billion U.S. dollars to support the development of the Global South, and launched more than 1,800 cooperation projects.

With respect to WTO, since accession, China has actively participated in multilateral trade negotiations and made contributions commensurate with its level of development and capability, in order to promote trade for development. For instance, China has granted 100% duty free market access for LDCs. With respect to the aid for trade initiatives, under the framework of south-south cooperation, China has provided multilateral and bilateral aid for trade, in areas such as food security, trade facilitation, digital trade and human resources development.

China’s policy announcement on WTO Special and Differential Treatment is a concrete action to support development dimension at the center of the WTO’s work, and a concrete action to firmly uphold the multilateral trading system, advance the Global Development Initiative.

China is the world’s largest developing country. China’s status as a developing country has not changed. We will continue to promote inclusive economic globalization that is beneficial for all.

Now, I would like to invite my colleague to further elaborate on China’s position.

[Continued[1]]

To provide greater clarity on China’s position regarding special and differential treatment within the WTO, China has circulated a paper WT/GC/274. Allow me to highlight four key points:

First, special and differential treatment is a core principle of the WTO and an integral part of its agreements. It is also a legitimate and institutional right of developing Members. SDT provisions in specific agreements are essential tools to help developing Members better integrate into the multilateral trading system. Whether to seek SDT depends on members’ own decision. Developing members’ right to enjoy SDT is not negotiable. China’s position on this has never changed.

Second, China’s policy announcement is fully consistent with its longstanding pragmatic and independent approach to exercise its right to SDT in the WTO. For example, in the negotiations on ITA expansion and the Trade Facilitation Agreement, China only requested very limited transition periods for a very small number of products or areas. In negotiations on Service Domestic Regulation and the TRIPS waiver for COVID-19 vaccines, China did not seek any SDT. China has also announced that it will not seek SDT as proposed in the G90 proposal. All these decisions reflect China’s independent decision based on its development stage and capacity.

Third, this policy announcement applies to current and future negotiations under the WTO framework. It does not affect China’s status as a developing country — whether within the WTO or in any other international context. China remains a key member of the Global South and will always be part of the developing world. It does not affect China’s rights as a developing country in other international organization or international treaty to which China is a member or signatory. It does not affect China’s right to SDT under existing WTO agreements.

Fourth, going forward, China will continue to stand with developing Members to prioritize development in WTO’s work. We will continue to advocate for building more balanced and universally beneficial partnerships for development, take concrete actions under the Aid for Trade initiative for developing members and LDCs under South-South cooperation, and promote further outcomes on development issues in a results-oriented, adaptive, and incremental manner, so that more developing Members can truly benefit from their participation in the multilateral trading system.

Concluding Remarks

Thank you, Chair.

China appreciates the recognition from other members and will take it as a renewed impetus for our continued efforts on supporting the rules-based multilateral trading system with the WTO at its core.

Having heard the statements from certain members, one thing I want to clarify is that China is still a developing member and we believe that whether a member belongs to developing country depends on its development stage, standard of living, among many other criteria. Using GDP per capita as a core criterion, China is of course still a developing member. Even though China's economic size is bigger than most other WTO members, our GDP per capita is still well below many developing economies.

Having said that, we hope that major developed economies could also lead by example and take responsible measures to safeguard the stability of world trade and the prosperity of the world economy.

Facing severe crisis, only with members' joint contribution and shared conviction can we advance the deep reform process, can the multilateral trading system survive the current turbulence. It is hoped that this policy announced by China could provide a spur to our current reform discussions on development so that it could be advanced in a pragmatic and constructive manner.

Let's do it.

Thank you.

Item 14.  Incorporation of the Agreement on Electronic Commerce into Annex 4 of the WTO Agreement– Request from the Members parties to the Agreement on Electronic Commerce

Thank you Chair.

We would like to thank Japan for the updates.

Digital economy is reshaping global trade. Digital trade is also facing regulatory fragmentation challenges. To harness the opportunity and challenges, there is urgent need of a global solution to build a more predictable framework.

As the first set of global baseline rules on digital trade, ECA provides strong support for enabling business environment, creates new opportunities to MSMEs and demonstrates WTO can keep pace with the world.

China calls on all members to endorse the ECA incorporation and encourages members to seriously assess the possibility to join it in the future.

Thank you.