Trade Dispute – China Signals Countermeasures as US Expands Global Trade Investigations
Trade Dispute – China has issued a strong warning after the United States widened its trade investigations involving multiple economies, including China, over allegations linked to forced labour and industrial overcapacity.
China expressed serious concern over Washington’s latest move, stating that it has formally raised the matter with US authorities through diplomatic channels. According to the Chinese Embassy, the investigations represent an improper use of American trade legislation and could negatively affect the stability of global supply chains. Beijing also stated that it is prepared to defend its commercial interests if the situation escalates further.
Beijing Responds to US Trade Investigations
Chinese officials confirmed that they are closely following the progress of the investigations and may introduce countermeasures if necessary. The embassy maintained that China would take every appropriate step to protect its lawful rights and economic interests.
The United States has initiated investigations under Section 301 of its Trade Act involving 16 economies, including China, citing concerns over industrial overcapacity. In a separate action, Washington has also opened investigations covering around 60 economies over claims that imported goods may have been produced using forced labour.
China rejected the basis of these investigations and pointed out that an earlier ruling by the World Trade Organization found previous Section 301 tariffs imposed by the United States on Chinese products to be inconsistent with WTO rules.
Ongoing Efforts to Improve Bilateral Trade
Despite the latest disagreement, both countries continue discussions aimed at easing trade tensions. Officials from China and the United States have agreed to establish a Board of Trade that will examine reciprocal tariff reductions and address broader trade-related concerns.
The Chinese Embassy said both governments have identified agricultural trade as an important area for future cooperation. They have reportedly agreed in principle to include selected agricultural products within a framework designed to support mutual tariff reductions.
China also emphasized that commercial decisions should remain in the hands of businesses operating according to market demand and commercial conditions rather than political considerations.
Focus on Agricultural Cooperation
Chinese authorities said they are willing to work alongside the United States to create a more favourable environment for agricultural commerce. Officials indicated that representatives from both sides will continue maintaining communication while encouraging companies to strengthen business partnerships and expand trade opportunities.
The embassy described agricultural cooperation as an area where both countries could achieve practical economic benefits despite broader disagreements in other sectors.
China Criticises US Restrictions on Companies
Alongside trade concerns, Beijing criticized Washington’s continued restrictions on Chinese firms. Chinese officials argued that the United States has broadened the interpretation of national security beyond reasonable limits and has used government authority to place unnecessary pressure on Chinese businesses.
China also announced that it has added 10 American entities connected with military-related activities to its export control list. As a result, exports of dual-use products to those organizations will no longer be permitted.
According to Beijing, this decision was made after the United States expanded its own list of what it describes as Chinese military companies. Chinese officials said their response is intended to protect national security, safeguard national interests, and meet international non-proliferation commitments.
Long-Running Trade Frictions Continue
Section 301 of the US Trade Act of 1974 authorizes the American government to investigate foreign trade practices considered unfair and allows it to introduce trade restrictions when deemed necessary. The provision was widely used during President Donald Trump’s first administration to impose tariffs on a broad range of Chinese imports.
Trade disagreements between the world’s two largest economies have continued for several years, covering tariffs, technology controls, industrial subsidies, investment rules, and market access. These recurring disputes have frequently influenced global financial markets, reflecting the importance of both countries in international trade and economic growth.