China’s status is a ‘developing country’ at the World Trade Organization (WTO), and it has become a contentious issue 

China is an upper-middle-income country, but at WTO, China is a developing country

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Several countries are raising concerns since China derives benefits reserved for developing countries under WTO norms. Therefore many nations have called on China to either refrain from seeking benefits available to developing countries or forego its classification as a developing country.

Due to the uneven level of development between developed and developing countries in the WTO, countries are designated as developed, developing, and least developed countries (LDCs). But Members announce for themselves whether they are “developed” or “developing” countries.

Developing country status in the WTO brings certain rights. Having a “Developing country” status ensures preferential treatment or provisions. It allows them more time to implement agreements and commitments, including measures to increase their trading opportunities, safeguard their trade interests, and provide affordable technical assistance to countries, among other things (like when developed countries give trade concessions to developing countries; they should not expect the developing countries to make matching offers in return).

China allegedly uses unfair trade practices such as preferential treatment. 

All about WTO in the below video (Animated)

Source: IE