There is no universally accepted definition of what qualifies a country as “developing.” Most international organizations, including the World Bank, WTO, and UN, allow nations to self-designate based on various broad indicators. These indicators typically include per capita income, industrial development, institutional capacity, and poverty levels. This system permits wealthier countries, such as China, to maintain their “developing” label while enjoying associated benefits.
As of 2025, China has a Gross National Income (GNI) per capita of approximately $13,400, categorizing it within the upper-middle-income group. It is anticipated that China will soon transition into the high-income bracket. The nation holds the position of the second-largest economy globally and leads in areas such as exports, infrastructure development, foreign reserves, and advanced technologies including artificial intelligence and semiconductors.
China maintains its claim to developing country status based on arguments surrounding domestic inequality, rural poverty, and significant regional disparities. By keeping this label, China aims to secure trade concessions, flexibility in climate transition, and access to concessional development finance. Additionally, it leverages this status to assert leadership among Global South nations and influence multilateral negotiations.
Countries classified as “developing” receive several advantages on the international stage, which include:
During COP29, held in 2024, China declined to accept binding obligations for contributing to the newly established Loss and Damage Fund, intended to assist climate-vulnerable nations in recovering from extreme weather events. Despite being the largest global emitter and an economic powerhouse, China argued for its continued status as a climate finance recipient rather than a contributor. This stance, alongside similar reluctance from other emerging economies, contributed to a stalemate in negotiations and hindered global climate objectives.
China is a leading producer of coal, possesses the largest renewable energy capacity, and emits more CO₂ than the US and EU combined. However, it avoids taking on commensurate responsibilities under international agreements. It delays net-zero targets, resists obligations related to climate aid, and continues to receive adaptation funds while financing fossil fuel projects overseas.
China's persistent claim to developing status undermines global attention and resources allocated for genuinely low-income countries. It obstructs climate finance access for small island states and least developed nations, thereby sidelining these countries in global trade preference schemes and delaying crucial climate negotiations.
In 2025, US Treasury Secretary Scott Bessent asserted that China must “graduate” from the developing classification. He criticized China's reliance on historical grievances to justify retaining benefits while exerting superpower-level influence and resources. The US advocated for clearer definitions and reforms to curb economic giants from misusing development categories.
Proposals for reforms such as UNSC expansion, stricter climate finance eligibility, and updates to WTO rules have been introduced repeatedly. However, countries like China frequently oppose these reforms, especially when they threaten their status or privileges. For instance, China has resisted India’s bid for permanent UNSC membership, despite advocating “South-South cooperation.” Institutional inertia and power imbalances often slow down reform efforts.
Q1. What criteria define a developing country in global institutions?
Answer: Developing countries are typically defined by self-designation based on indicators like per capita income, industrial development, and poverty levels, as recognized by organizations like the World Bank and UN.
Q2. How does China justify its developing country status?
Answer: China cites domestic inequality, rural poverty, and regional disparities as reasons for its continued claim, aiming to retain trade benefits and climate flexibility.
Q3. What are the key privileges for developing nations?
Answer: Developing nations enjoy advantages such as low-interest loans, longer compliance deadlines, increased climate finance, and reduced contributions to international organizations.
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