US Senate panel approves measure to strip China of ‘developing’ status
Recently a committee of the US Senate has approved legislation to end China’s “developing country” status.
- This law will pave the way for an American policy. Under this policy, China will not be treated as a developing country in future treaties and international organizations. Earlier, a similar law was also passed by the US House of Representatives.
- Under this law, it has been claimed that China can no longer be considered a developing country. This is because of its vast economy, military power and the extensive investments it is making around the world.
- The World Trade Organization (WTO) has not defined ‘developed’ and ‘developing countries’. Therefore, the member countries are free to declare themselves whether they are ‘developed’ or ‘developing’.
- The United Nations has also not set any formal definition of developing countries. Yet he continues to use the term for surveillance purposes.
Benefits of developing country status:
- Such countries are treated preferentially in terms of access to the global market, access to credit, lack of government support, and technical assistance from international organizations.
- Developing countries are given some additional time to fully implement a WTO agreement.
- Some developed countries extend the benefits of unilateral preference schemes to developing countries, such as the Generalized System of Preferences (GSP) scheme of the United States.
- Developing countries are treated favorably with respect to issues such as climate change responsibilities.
Source – The Economic Times
