President
Donald Trump opened another chapter in the trade war with China, ordering his top trade negotiator to pressure the World Trade Organisation (
WTO) to crack down on countries the US doesn't think should be allowed to declare themselves developing nations.
Trump singled out China in a memo to US trade representative Robert Lighthizer, saying that "the US has never accepted China's claim to developing-country status, and virtually every current economic indicator belies China's claim." In response, China said that it's still a developing nation and needs flexibility and policy room.
In a tweet that followed release of the memo, the president called the WTO "broken". But analysts said it was unclear what power the US had to effect any change or to use it as justification for
tariffs or other potential remedies, given that decisions at the WTO are made by consensus and the issue has long been a point of contention.
The move came ahead of a trip by Lighthizer and other officials to China, to try and restart trade negotiations that stalled in May. The US has insisted as part of those negotiations that China should give up its developing country status, something China has said it will not do.