China launches investigations into US trade practices. Why now?

Beijing has launched two trade barrier investigations into the United States in response to a pair of Section 301 probes that allege unfair trade practices by China and other economies and could pave the way for Washington to reimpose higher tariffs.

According to the Ministry of Commerce, the investigations would focus on US measures deemed harmful to global industrial and supply chains, including those that obstruct trade in green products.

The ministry said in a statement on Friday that “preliminary evidence and information” suggested that Washington may have restricted or banned Chinese goods from the US market; curbed exports of advanced technology products to China; limited two-way investment in critical sectors; slowed the roll-out of new energy projects; and restricted cooperation on green product technologies.

If confirmed, these practices would “seriously harm” the interests of Chinese companies, the ministry warned, adding that some of the measures could violate World Trade Organization (WTO) rules and past bilateral agreements.

Both investigations are expected to be completed within six months, though the deadline can be extended once by up to three months.

Beijing recently concluded a similar trade investigation into Mexico, accusing the country of imposing trade and investment barriers by levying tariffs on Chinese goods.

South China Morning Post