China has launched two trade-barrier investigations into US practices and measures that Beijng suspects disrupt global production and supply chains and restrict Chinese exports, particularly in green technology sectors.
The Chinese Ministry of Commerce said on Friday (March 27) that the probes will assess whether US actions, ranging from import restrictions to export controls, have harmed Chinese companies and impeded the development of new energy industries.
The move follows a fresh round of the Office of the United States Trade Representative (USTR)’s Section 301 investigations initiated in early March, which target 16 economies over industrial overcapacity in sectors such as steel, semiconductors and automobiles, and a further 60 economies over alleged forced labor practices. Analysts say the latest probes by the US are heavily focused on China, despite being framed as broader actions.
“China is strongly dissatisfied with and firmly opposed to the USTR’s actions,” said a spokesperson for the Ministry of Commerce. “In the next phase, we will proceed with the trade-barrier investigations in accordance with the Foreign Trade Law of the People’s Republic of China and relevant rules, and will take corresponding measures based on the findings to firmly safeguard its legitimate rights and interests.”
The ministry said the trade-barrier investigations will focus on two main areas:
- Disruptions to global supply chains: Preliminary evidence is said to indicate that the US has adopted measures such as restricting or banning Chinese products from entering the US market, limiting exports of high-tech products to China and curbing two-way investment in key sectors.
- Barriers to green trade: Preliminary findings show such US actions as restricting exports of green products to the US, slowing the deployment of new energy projects and limiting technology cooperation in green industries.
The ministry said such practices may seriously harm the trade interests of Chinese companies, with some measures suspected of violating World Trade Organization (WTO) rules and bilateral or multilateral economic and trade agreements between the two countries.
It added that authorities may use questionnaires, hearings and on-site investigations to gather information from relevant stakeholders, with the probe expected to conclude within six months, extendable by up to three months under special circumstances.
Beijing’s announcement came after US President Donald Trump said on his social media account on March 26 that he plans to visit China on May 14–15 for talks with Chinese President Xi Jinping.Beijing has not confirmed the dates.
The trip, originally scheduled for March 31, was delayed following US and Israeli strikes on Iran last month. Trump’s previous visit to China took place in November 2017 during his first term.
Seeking compensation
On February 20, the US Supreme Court said the International Emergency Economic Powers Act (IEEPA) does not allow the president to impose new tariffs. In response, Trump invoked Section 122 of the Trade Act of 1974 to introduce a temporary 10% tariff for up to 150 days, putting pressure on the administration to complete its Section 301 investigations by July 20 if it wants to impose longer-term measures.
Some Chinese commentators said they are confident the latest trade-barrier probes could help Beijing push back against the USTR’s Section 301 investigations.
“If its investigations confirm the existence of trade barriers, China can take countermeasures in accordance with the law, including suspending relevant trade commitments, imposing reciprocal import restrictions or seeking compensation,” says a Shandong-based columnist.
“The probes are expected to conclude within six months, with a possible three-month extension,” he said. “This effectively gives China a continuing policy lever through to the end of 2026, allowing it to act based on how the situation evolves. The investigations lay the legal groundwork for any follow-up actions.”
The columnist said China’s ability to launch the probes rests on two key factors:
- Market scale: China’s total goods trade reached 45.2 trillion yuan (US$6.3 trillion) in 2025, giving it room to use tariffs or import curbs that can affect US industries.
- Diversified trade ties: Exports to ASEAN, Africa and Latin America are rising, reducing reliance on the US and improving resilience against trade restrictions.
Last October, Trump and Xi agreed to a one-year trade truce, set to expire on November 10, 2026. The US will hold midterm elections on November 3, with Trump seeking to avoid escalating trade tensions with China to maintain economic stability and help Republicans retain control of Congress.
It is not the first time China has launched a trade-barrier investigation into the US.
In November 2011, the Ministry of Commerce launched an investigation into US support measures for the American renewable energy sector, following applications from Chinese industry groups. The investigation examined a range of federal and state-level policies, including “Buy American” provisions under the American Recovery and Reinvestment Act and subsidy programs in states such as Washington, Massachusetts, Ohio, New Jersey and California.
Beijing said at that time that the measures restricted Chinese renewable energy exports, weakened their competitiveness in the US market and may have breached WTO rules. The ministry later concluded that the measures amounted to prohibited subsidies and trade barriers against Chinese products. It urged the US to remove them through bilateral consultations and the WTO dispute process.
However, these efforts did little to resolve the dispute, and tensions instead escalated in 2012 when the US Department of Commerce imposed preliminary anti-dumping duties of about 31% on Chinese solar panels. The move prompted Chinese manufacturers to shift production to Southeast Asia to bypass tariffs. Countries such as Vietnam, Malaysia, Thailand and Cambodia became key export hubs, accounting for about 80% of US solar imports by 2023.
Mexico’s tariffs
In December 2024, Mexico announced tariff hikes of up to 35%, and as high as 50% in some sectors, on imports from countries without free trade agreements, including China.
The move came amid pressure from Washington, which has sought to prevent Chinese firms from using Mexico as a backdoor into the US market under the US–Mexico–Canada Agreement.
Last September, the Chinese Ministry of Commerce launched a six-month trade-barrier investigation into Mexico’s trade practices. On March 25, the ministry said it had completed the investigation, finding that Mexico’s measures had restricted Chinese exports, investment and services and had weakened the competitiveness of Chinese firms in the local market.
Findings showed that the auto sector has been the hardest hit, with losses estimated at about US$9 billion, mainly in vehicles and auto parts. Beijing also pointed to non-tariff barriers, including stricter customs inspections, which it said have added pressure on Chinese companies’ investment and operations.
“Mexico’s tariffs and non-tariff measures constituted trade and investment barriers,” said the ministry. “China reserves its right to take corresponding action under relevant regulations to safeguard its industrial interests.”
An article published by the Zhejiang Provincial Council for the Promotion of International Trade, citing official findings, said 81.1% of surveyed Chinese companies believe Mexico’s tariff measures would hinder or restrict their access to the Mexican market. Other surveyed firms expressed concern about potential negative impacts.
The article said that, due to Mexico’s measures, about 29.2% of companies forecast losses exceeding $10 million over the next year, while 19.1% expect losses of $5 million to $10 million. Another 29.2% estimate losses between $1 million and $5 million, and 21.9% expect losses below $1 million.
“Mexico’s approach reflects a contradictory strategy. It wants to attract Chinese investment and supply chains, but at the same time fears that low-cost Chinese goods will undercut domestic manufacturers,” says a writer with Sanstar Logistics, a company specializing in China-Mexico trade routes.
“With the US pushing to address overcapacity issues, Mexico is aligning more closely with Washington on tariffs even if that risks retaliation from China,” he says.
The writer adds that Mexico’s main advantage lies in its access to the US market, where about 85% of its exports are duty-free, and that it is seeking to deepen integration into the North American supply chain ahead of any review of the US–Mexico–Canada Agreement.
He says Beijing has not yet taken action, but possible countermeasures would probably target Mexican food and raw material exports to China.
Read: US warned of China rare earth curbs if Section 301 tariffs expand
Follow Jeff Pao on Twitter at @jeffpao3
