China has recently defended the World Trade Organization's (WTO) most-favoured nation principle, which mandates that member countries must treat all trading partners equally. This defense comes as the US and EU have suggested revisiting this principle, highlighting concerns that allowing preferential treatment could lead to a dominance of powerful nations over smaller economies. The document submitted by China marks its first official reflection on the WTO's self-review process initiated in 2022, indicating its commitment to multilateralism and equitable trade practices.

In its submission, China warned that violations of the most-favoured nation rule have begun to undermine the foundational principles of the multilateral trading system, a system designed to promote fair competition among countries regardless of their economic size. It highlighted recent actions taken by the US, particularly the imposition of extensive tariffs on its trading partners, as blatant breaches that threaten to dismantle global trade norms and foster an environment where larger economies can dictate terms to their lesser counterparts.

By reinforcing its stance on the non-discrimination principle, China aims to galvanize support for maintaining equitable trade practices globally. It positions itself as a defender of small economies against potential exploitation, while advocating for a return to a system based on fairness and equal treatment. The implications of this debate are significant, as any shift in WTO rules could alter the balance of power in international trade and affect global economic stability in an increasingly polarized trade environment.