China expressed opposition over the United States’ intention to renew its tariff pressure by launching sweeping trade investigations into 16 major economies, including China, just as top negotiators of both countries are holding their sixth round of talks. The timing of the U.S. probes represents a calculated effort to create bargaining chips on the eve of dialogue with China, experts said, warning that Washington’s reliance on unilateral trade tools risks eroding the foundation of mutual trust. The Office of the U.S. Trade Representative last week initiated two separate probes under Section 301 of the Trade Act of 1974, targeting what it calls “structural excess capacity and production” in manufacturing and forced labor practices. The investigations cover China, the European Union, India, Japan, South Korea, Mexico and Vietnam, among others. “So-called ‘overcapacity’ is a spurious argument, and China opposes political manipulation under such a pretext,” said Foreign Ministry Spokesman Guo Jiakun at a news conference.
“China’s position on addressing China-U.S. economic and trade issues is consistent and clear,” Guo said. “China opposes all forms of unilateral tariff measures.” Tariff wars and trade wars serve no one’s interests. The two nations should resolve their issues through consultation on the basis of equality, respect and mutual benefit, Guo added. Previously, a Spokesperson for the Ministry of Commerce said in late February that China will take all necessary measures to resolutely safeguard its legitimate rights and interests should the U.S. insist on advancing relevant investigations.
The U.S. investigations followed a landmark Supreme Court ruling on February 20, which struck down broad tariffs imposed under the International Emergency Economic Powers Act, and in China’s case, invalidated the so-called “fentanyl tariff” and “reciprocal tariff” on Chinese goods. In the immediate aftermath of the court decision, the U.S. turned to Section 122 of the Trade Act o 1974, imposing a 10% import surcharge on all trading partners. The new duties took effect on February 24, but are set to expire after 150 days, indicating their provisional nature. The latest probes create a fraught backdrop for the upcoming China-U.S. trade and economic consultations, said Bai Ming, Researcher at the Chinese Academy of International Trade and Economic Cooperation. “China always advocates for resolving disputes within the multilateral framework and through equal consultation. When one party uses investigations and tariff threats as negotiation tools, it doesn’t create leverage, it undermines the very foundation for dialogue,” Bai said, as reported by the China Daily.
