India questions China’s claim to be a developing nation; All you need to know

India questions China’s claim to be a developing nation;  All you need to know

India has challenged China’s claim that it is a developing country in the latest round of its trade policy review at the World Trade Organization (WTO).

India claims that China’s per capita income belongs to an upper-middle-income country as defined by the World Bank, Business Standard reported.

The World Bank definition

The World Bank defines an upper-middle-income country as one that has a per capita income of $ 4,096 to $ 12,695. Those with a per capita income of $ 12,696 or more are considered high-income countries. According to the Business Standard report, China’s per capita income in 2020 was $ 10,435. The United States with a per capita income of $ 63,413 is considered a high-income nation, while India, with a per capita income of $ 1,928, is in the group of lower-middle-income nations.

What are the advantages of “developing country” status?

According to the World Trade Organization website, countries with developing country status enjoy certain rights, such as longer transition periods for the implementation of agreements and technical assistance.

Due to rapid economic progress, the United States has been demanding that India and China voluntarily renounce the benefits offered to developing countries in the WTO. However, both countries have opposed the measure.

China has highlighted the lack of an adequate definition by international organizations and said that the concept of developing country was relative to developed nations.

Currently, WTO members themselves assign “developed” or “developing” country status. Others may challenge the declared status of a country. The country that declares itself a “developing” nation can take advantage of the provisions available for such countries.

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In December, China’s ambassador to the WTO, Li Chenggang, told Reuters in an interview that Beijing was willing to give up many of the benefits even though it would maintain its status as a “developing” country in the world trade body. .

Due to persistent poverty, China is still considered a developing country despite strong growth, Li Chenggang said. However, he declined to say when the country would cease to be considered a developing country altogether.

Others have also raised the alarm

India is not alone in questioning China’s developing country status. The United States has also criticized its status as a developing country, saying it was unfair for Beijing to take advantage of preferential treatment for the poorest countries.

Brazil, Indonesia and the European Union also warned on the issue.

India had requested an explanation of China’s claim that it has “moved from a rapid growth stage to a high-quality development stage”. In response, China said “high-quality development” will include a new development concept with innovation as the first driving force.

(Edited by : Aditi Gautam)

First published: IS

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