China says it’s ready to talk tariffs and subsidies with US at WTO

China has signalled its willingness to renegotiate trade terms with the United States, but on its own conditions. A senior Chinese delegate in Geneva told Reuters that Beijing is prepared to discuss tariffs, subsidies, and even some benefits linked to its developing country status at the World Trade Organization.

This is a rare indication of flexibility from Beijing, which has long defended its trade privileges under WTO rules. The comments come as WTO members prepare for an ambitious reform agenda ahead of the next ministerial meeting in 2026 in Cameroon.

US–China tensions spilling into Geneva

The remarks follow months of intensifying trade tensions between Washington and Beijing. The tariffs imposed during President Donald Trump’s first term have largely remained in place, with his second administration introducing new duties this year targeting Chinese electric vehicles, semiconductors, and solar panels.

China has retaliated with its own trade measures and disputes at the WTO. Yet, despite the rhetoric, Chinese officials in Geneva are striking a more pragmatic tone.

According to Reuters, the delegate, who asked not to be named said China had “heard every word” spoken by the US at the WTO and is ready to engage on difficult issues, including industrial policy and tariff schedules.

However, there is a clear red line.

Beijing insists its developing country status is non-negotiable. That designation confers Special and Differential Treatment (SDT) under WTO rules, allowing more lenient subsidy limits and higher tariff ceilings. Yet the delegate indicated China might voluntarily forgo SDT benefits in some talks, just as it did recently on fisheries and domestic regulation reforms.

US demands complete SDT rollback

At the heart of the debate is Special and Differential Treatment (SDT), a WTO principle that gives developing countries additional flexibility in global trade rules. SDT lets them maintain higher tariff limits, use more subsidies, and enjoy longer timelines to implement WTO agreements.

Beijing insists its developing country status is non-negotiable. That status automatically provides access to SDT benefits. However, the Chinese delegate suggested Beijing might voluntarily forgo SDT in specific negotiations, as it did recently on fisheries and domestic regulation reforms.

The United States has pushed for a harder stance. Washington argues that major economies such as China and Saudi Arabia abuse the ‘developing country’ label to secure unfair trade advantages. US negotiators want countries like China to fully abandon SDT, not selectively give it up in certain areas.

Keith M. Rockwell, former WTO spokesperson and now senior research fellow at the Hinrich Foundation, told Reuters he remains sceptical that China will go that far. In politically sensitive sectors such as agriculture, he doubts Beijing would willingly relinquish SDT privileges. China’s delegate nonetheless said the country is open to discussing subsidies, but only if talks are conducted in good faith. What Beijing will not accept, the official stressed, is any attempt to alter its state-led economic system.

Tariff talks may begin under WTO’s Article 28

Significantly, Beijing has also suggested it is ready to renegotiate tariffs under Article 28 of the WTO framework, a provision that allows members to modify tariff bindings under specific conditions.

“We welcome the US to come back to the WTO,” the delegate told Reuters. “We are ready to renegotiate on Article 28 if the US raises their requests here.”

That invitation follows what China described as “positive” trade discussions in Geneva and London. Yet despite warmer words, the fundamental tensions, from electric vehicle tariffs to technology sanctions, remain unresolved.

As both sides talk about WTO reform, the real test will be whether these gestures of flexibility lead to genuine commitments at the negotiating table.

(With inputs from the agencies)