China Submits Comprehensive Policy Paper on WTO Reform

Beijing Outlines Stance on Global Trade Body's Future

Beijing, China – China has recently submitted a comprehensive policy document to the World Trade Organization (WTO), articulating its detailed position on the ongoing reform of the global trade body. The submission, confirmed by the Ministry of Commerce on Thursday, February 19, 2026, marks China's first such policy paper since the launch of the necessary WTO reform process in June 2022.

This latest document systematically sets out China's stance amidst severe challenges facing the multilateral trading system and evolving global development needs. China had previously released a position paper in 2018 and a proposal in 2019, taking an early lead in advocating for WTO reform.

Key Principles and Proposals

The new policy paper is described as multilateral-oriented, development-focused, and future-oriented, outlining China's overall principles and action proposals for WTO reform. Key aspects highlighted in the document include:

  • Upholding Multilateralism: China reiterates its support for open and inclusive economic globalization and its commitment to maintaining the multilateral trading system.
  • Development at the Core: The document calls for placing development at the center of the reform agenda, aiming to help developing members seize growth opportunities in areas such as the digital economy, green transition, and artificial intelligence. China emphasizes safeguarding the special and differential treatment for developing members.
  • Fair Competition and Future-Oriented Rules: It urges discussions on government measures that produce trade-distorting effects, advocates for respecting members' diverse economic systems and stages of development, and seeks consensus on fair competition to foster an international trade rules environment that better meets industrial development needs.

Addressing Specific Challenges

China's proposals also address critical operational aspects of the WTO. A primary focus remains on reactivating the Appellate Body, which is crucial for the effective functioning of the dispute settlement mechanism. Regarding subsidies, China defends its interests and the role of state-owned enterprises (SOEs), asserting that SOEs are equal market players and should not face discrimination. The paper proposes clarifying and improving existing WTO rules on subsidies, countervailing measures, and anti-dumping measures.

Furthermore, China has expressed openness to negotiations on subsidies, encompassing both agricultural and industrial subsidies, and has called for tightening trade relief disciplines to prevent abuse. The document underscores that WTO reform should be based on the principle of non-discrimination and should not target specific countries, while also advocating for consensus-based decision-making.

Context and Significance

The submission of this comprehensive paper reflects China's continued engagement with the WTO and its vision for the future of global trade governance. It aims to enhance the organization's authority and efficacy, and increase its relevance in global economic governance, particularly at a time when the multilateral trading system faces significant challenges from rising unilateralism and protectionism.

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