House Unanimously Passes Bill To Revoke China’s Special Treatment As A ‘Developing Country’

The US House has passed a bill unanimously, aimed at ending the US policy of treating China as a “developing country” as per treaties and international organizations. China is one of the several emerging markets that receives special treatment in loan application processes from international entities like the World Trade Organization. The PRC is Not a Developing Country Act requires the United States to strive, through international organizations, to designate China as either high income, upper middle, or developed. The bill won the affirmative votes of 415 lawmakers.

The purpose of this bill is to ensure that China does not receive unfair treatment or undue leverage over developing nations through influence in international treaties and organizations. China’s GDP per capita, which stands at $12,556, is closer to the figures for Costa Rica and Russia ($12,934 and $11,368) as compared to the US with a GDP per capita of $70,249.

While there is no official definition of “developing country” or “developed country” by the World Trade Organization, some accords mandate that developing countries are given longer transition periods before implementing an agreement in full. The author of the bill, Young Kim (R-CA), proposed it to put an end to China’s exploitation of its developing country status in applying for loans and development assistance from international organizations. Kim claims China’s debt-trap diplomacy and Belt and Road Initiative, through which it finances trillions in infrastructure projects in developing states, only serves as a cover-up.

Mitt Romney (R-UT) has also proposed the Ending China’s Developing Nation Status Act, which seeks to prevent China from obtaining developing nation status within international organizations and future treaties. The current push to end China’s developing nation status comes amid worsening relations between the US and China. Lawmakers are trying to ban TikTok, a Chinese-owned social media platform, over concerns about data privacy and national security. At the recent House Energy and Commerce Committee hearing, TikTok CEO Shou Zi Chew defended TikTok’s and ByteDance’s independence from the Chinese regime. China-US tensions were further exacerbated last month with the appearance of a Chinese surveillance balloon that flew over several American states, including Montana, a state with several missile silos, before being shot down by US military officials off the coast of the Carolinas.

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