Recently, China submitted the "China's Position Paper on WTO Reform under the Current Circumstances" (hereinafter referred to as the Position Paper) to the World Trade Organization (WTO). The head of the WTO Department of the Ministry of Commerce provided an interpretation of the Position Paper.

I. Background of the Submission of the Position Paper

WTO reform is a key topic in the current field of global economic governance. The WTO initiated a necessary reform process in June 2022, achieving some progress in areas such as mechanism operations. In the face of unilateral tariff measures disrupting the global trade and economic order and certain members abusing decision-making mechanisms to obstruct multilateral negotiations, WTO members will launch in-depth reform consultations in the second half of 2025. The aim is to address pressing issues such as operational inefficiencies and rule deficits based on prior 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 WTO in playing a greater role in global economic governance. China was the first to propose necessary reforms to the WTO and released the "China's Position Paper on WTO Reform" in 2018, followed by the submission of the "China's Proposal on WTO Reform" to the WTO in 2019, making positive contributions to the initiation and advancement of necessary WTO reforms. Considering the severe challenges and development needs faced by the current multilateral trading system, China submitted the Position Paper to the WTO based on its own demands and the concerns of other members.

II. Main Content of the Position Paper

The Position Paper consists of two parts: overall position and work recommendations.

The overall position outlines China's general understanding of the WTO and its basic attitude toward WTO reform. The Position Paper states that the WTO provides institutional guarantees for economic globalization that are open, non-discriminatory, stable, and predictable. Despite the impact of unilateral tariff measures and escalating trade tensions, WTO rules and mechanisms remain an important shield against trade turbulence. Unilateralism and protectionism are not solutions; all parties should address the practical challenges of 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 WTO reform should aim to strengthen multilateral trade governance, uphold the cornerstone role of most-favored-nation treatment in the WTO rule system, and place development at the center of the WTO reform agenda. It should address long-standing unresolved issues while exploring the formulation of new rules for the future.

The work recommendations section outlines China's priorities for WTO reform. The Position Paper suggests that members should formulate a gradual and structured WTO reform work plan at the 14th WTO Ministerial Conference, establish a specific timeline, 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 focus on priority issues such as clarifying decision-making mechanisms, development, and fair competition. On decision-making mechanisms, it proposes flexible decision-making under the premise of respecting the consensus principle, setting balanced and inclusive standard conditions, and promoting flexible plurilateral initiatives to address the difficulty of rule-making caused by decision-making challenges among members. On development issues, it suggests implementing special and differential treatment provisions in a more precise and effective manner without altering the self-determination approach of developing members, encouraging them to seize opportunities in digital transformation, green transition, and artificial intelligence. On fair competition, it supports discussions on government measures that distort international trade, advocates enhancing transparency to build mutual trust among members, and calls for respecting members' different economic systems and development stages. Regarding dispute settlement mechanism reform, it advocates restoring a fully functional and operational dispute settlement mechanism accessible to all members.

III. Main Characteristics of the Position Paper

In terms of nature, the Position Paper is the first comprehensive policy document submitted by China to the WTO since the initiation of the WTO reform process, systematically articulating China's stance on WTO reform. It represents a concrete action by China to implement global governance and development initiatives and is an important measure to unite the majority of members in safeguarding the multilateral trading system. The Position Paper reflects China's reform demands and the concerns of other members, aligning with China's identity as a responsible developing major country and responding to the expectations of various parties, especially developing members, for China's reform proposals.

In terms of content, the Position Paper is based on multilateralism, focuses on development, and looks to the future, systematically elaborating China's overall principles and action recommendations for WTO reform under the current circumstances. Regarding multilateralism, the Position Paper outlines China's positive attitude toward supporting inclusive economic globalization and maintaining the multilateral trading system, as well as the importance of further advancing WTO reform under the current circumstances. Regarding development, the Position Paper emphasizes placing development at the center of the reform agenda to help developing members seize opportunities in the digital economy, green transition, and artificial intelligence. Regarding the future, the Position Paper stresses the need to discuss government measures that distort international trade, respect members' different economic systems and development stages, and strive to reach consensus on fair competition, creating an international trade rule environment more conducive to industrial development.