China has initiated two investigations into U.S. trade practices, a move seen as retaliation against similar probes by the Trump administration. This action escalates trade tensions between the two economic giants just weeks before an anticipated summit between Presidents Trump and Xi.
China’s Ministry of Commerce revealed on Friday that it has launched two investigations into U.S. trade practices. This action mirrors recent steps taken by the Trump administration, which revived its tariff agenda after certain duties were struck down by the Supreme Court. The Chinese probes are designed to safeguard the interests of relevant domestic industries and express firm opposition to the American investigations.
One of the new Chinese investigations will scrutinize U.S. policies that restrict Chinese goods from entering the United States and limit the export of advanced U.S. technology products to China. The second probe will focus on barriers affecting Chinese green energy exports. These investigations are anticipated to take six months to complete, with the possibility of an additional three-month extension if deemed necessary.
These reciprocal investigations represent the latest development in the ongoing trade dispute between the U.S. and China. They could serve as bargaining chips for China in potential future negotiations or in response to any new U.S. tariffs. The U.S. had previously launched Section 301 trade investigations, one of which examined allegations of excess industrial capacity and government subsidies that could provide an unfair advantage to companies in China and elsewhere. Another U.S. investigation targets the import of goods made by forced labor.
China’s trade representative had previously warned that the U.S. investigations could jeopardize the stability of economic relations between the two countries. The timing of these new probes, just ahead of an expected presidential summit in May, suggests a strategic positioning by China as both nations prepare for high-stakes discussions.