In a rare display of bipartisan unity, the US House of Representatives unanimously passed legislation requiring the US government to refuse to treat the People’s Republic of China as a developing nation.
The bill, literally entitled the “PRC is Not a Developing Country Act,” passed unanimously in the House in a 415-0 vote on Monday, and requires the State Department to “oppose the labeling or treatment of the People’s Republic of China as a developing country in any treaty or other international agreement to which the United States is a party.” The same goes for international organizations.
Instead, the legislation proposes, the Asian economic giant should be labeled and treated as an “upper middle income country, high income country, or developed country in each international organization of which the United States is a member.”
The bill, introduced jointly by Republican Congresswoman Young Kim and Democratic Congressman Gerry Connolly, would need to be considered by the Senate and signed by the president to become law. Neocon Republican Senator Mitt Romney and Democrat Chris Van Hollen introduced their own legislation in the chamber – calling it the ‘Ending China’s Developing Nation Status Act.’
US lawmakers and officials have spent years demanding that China be stripped of its ‘developing country’ status, owing to the Asian nation’s strong per-capita income growth and the overall size of its economy. Economists expect China to overtake the United States as the world’s largest economy by the year 2035. However, according to estimates by the International Monetary Fund based on purchasing power parity, the PRC already overtook the US several years ago.
The ‘developing country’ label was a complaint against China brought up repeatedly by Donald Trump during his presidency. Trump accused China of “cheating” by taking advantage of softer WTO restrictions, for example. However, Chinese officials, including the nation’s ambassador to the WTO, announced in 2019 that Beijing would voluntarily agree to forego many of the benefits afforded it, apart from “a few areas” like agriculture and the financial services sector.
“We will not ask for a blank check for special and differential treatment. We will carefully assess our needs,” Ambassador Li Chenggang said at the time.
Chinese media slammed the House of Representatives over the move on Tuesday, saying Washington “has no right to play referee on China’s developing country status,” and accusing US lawmakers of “exposing” America’s “sinister intentions to increase China’s development cost and force China to assume international responsibilities beyond its ability.”
“If China were to be stripped of its developing country label and were classified as a developed country in international organizations, China would face considerable pressure in economic, trade and other fields, which would have a domino effect on the future development environment of China and Chinese enterprises,” a Global Times piece explained.
That seems to be the intended effect by the US side. “The PRC exploits their developing country status by applying for development assistance and loans from international organizations despite trillions on infrastructure projects in developing countries as part of their debt trap diplomacy scam, known as the Belt and Road Initiative,” Representative Kim said on the House floor ahead of Monday’s vote.
“The [PRC] is the world’s second largest economy, accounting for 18.6 percent of the global economy. Their economy’s size is second only to that of the United States. The United States is treated as a developed country, so should the PRC,” Kim said.
The US’s attempt to reclassify China’s development status is the latest expression of increasingly chilly relations between Beijing and Washington on issues ranging including trade, technology and Taiwan. President Biden reportedly planned to speak with Chinese President Xi Jinping by phone earlier this month, but the conversation has been delayed in the wake of the “spy balloon” mania which overtook the US in late January and early February, which saw US military jets shoot down a Chinese weather balloon that had blown off course, and several other balloons operated by hobbyists.