The World Trade Organization praised China’s decision to forgo trade advantages linked to its developing country status, describing it as a step toward a fairer and more balanced global trading system.

Premier Li Qiang announced that Beijing will no longer seek Special and Differential Treatment benefits in future WTO negotiations, according to Reuters.

A Chinese diplomat at WTO headquarters in Geneva further said on Wednesday that China would continue to identify as a developing country, even though it will no longer claim SDT benefits.

Under WTO rules, developing nations are allowed greater flexibility, such as higher tariffs or subsidies, to support their industries. However, with China now the world’s second-largest economy, some trading partners—particularly the United States—have criticized this as unfair.

Washington has argued that meaningful reform of the global trading system is unattainable unless major developing countries relinquish these benefits.

“This is a pivotal moment for the WTO. China’s decision reflects a commitment to a more balanced and equitable global trading system,” WTO Director General Ngozi Okonjo-Iweala said in a statement.

WTO members are considering major reforms to strengthen the global trade body, which has faced challenges from a surge of tariffs imposed during the Trump administration.

A trade analyst at the Hinrich Foundation and former WTO communications director, Keith Rockwell, said that China’s decision could improve its relationship with Washington.