Trade Counterattack! China's Trade Barrier Investigation Directly Targets America's Weak Spot

(Source: The Times New Journey)

The latest upgrade in the China-U.S. trade game! China suddenly launches a “301 counterattack.” On the eve of Trump’s visit to China, what exactly is hidden behind this trade showdown?

Recently, China’s Ministry of Commerce suddenly took action, launching two trade barrier investigations against the United States, aimed at the U.S.’s alleged behavior of disrupting global industrial chains and hindering trade in green products. This move directly responds to the 301 investigations the United States had previously launched against multiple Chinese economic entities. On the surface, it is a trade friction; in reality, it conceals multiple rounds of maneuvering.

First, let’s look at the backdrop: the Office of the U.S. Trade Representative made back-to-back moves on March 12 and 13—first, on the grounds of “excess capacity,” it launched 301 investigations against China and 16 other economic entities, then it shifted and, under the name of “forced labor,” turned its focus to 60 economic entities, including China. China’s Ministry of Commerce did not show weakness. On March 27, it quickly retaliated, launching two trade barrier investigations against the U.S.’s actions that it said sabotage supply chains and suppress green industries. China’s stance is firm: “Strong dissatisfaction and resolute opposition!”

The U.S.’s 301 investigations may appear to be justified, but they are full of calculations. The underlying reasons are straightforward: last year, the U.S. Supreme Court ruled that Trump’s emergency measures to impose additional tariffs were unlawful during his term, and the White House urgently needs a new legal basis to maintain tariff pressure on China. So the Trump administration brought out Article 301 of the “Trade Act of 1974,” trying to “extend the life” of the tariffs. But the problem is this— the World Trade Organization has already ruled that the U.S. 301 tariffs violate the rules, so this move by the U.S. is no different from “making a mistake on top of another mistake.”

China’s countermeasures are both precise and sharp. The investigations directly target two major pain points for the United States: first, disrupting global supply chains. By limiting exports to China, banning Chinese products from entering the country, and other measures, the U.S. has thrown international trade into chaos. For example, it imposes a 100% tariff on Chinese electric vehicles and taxes solar products at 50%; these actions not only violate WTO rules but also expose the protectionist nature underneath. Second, hindering green trade. The U.S. talks big about environmental protection while at the same time setting obstacles for China’s new energy industry; it is purely “talking out of both sides of its mouth.”

A deeper layer of the game lies in Trump’s planned visit to China—trade negotiations are a key issue. At this time, the U.S. launching 301 investigations clearly wants to “bring chips to the table.” But China sees through it immediately: if you do investigations, I will counter with investigations, keeping the initiative in my own hands. As experts say, China’s 301 investigation is not “window dressing,” but rather building an upgradeable countermeasure framework—if the U.S. escalates, China can at any time “draw its sword.”

In this showdown, China’s strategy is clear: use law as a shield, countermeasures as a sword, and negotiations as a chess move. On the legal front, it cites the “Foreign Trade Law” and the “Rules on Barrier Investigations,” making its case legitimately; on the countermeasure front, it targets the U.S.’s pain points with precision; on the negotiation front, it keeps back-up options, waiting to see what the U.S. does. Bloomberg put it succinctly and accurately: China is telling the U.S.— “Don’t think about imposing tariffs; our gun is already loaded!”

Now look at the U.S. response—full of contradictions. Trade Representative Greer claims that China’s investigation is “symbolic,” but it can’t conceal the U.S.’s anxiety. In fact, the U.S. has many problems of its own: industrial hollowing out is accelerating; it can’t build chip factories; electric vehicle charging stations are few and far between; and the green transition is moving with difficulty. Meanwhile, China’s new energy industry has risen strongly. The more the U.S. sets obstacles, the more it shows its own insecurity.

In the end, the essence of this trade war is that the U.S. uses hegemonic methods to maintain its declining hegemony, while China uses rules as a weapon to safeguard legitimate rights and interests. As a spokesperson for China emphasized: we are not “delivering messages,” but building a workable countermeasure system. In the future, if the U.S. continues to swing the 301 big stick, China will surely “use the same tactics to return what was done, in kind.”

Some materials sourced from: Xinhua News Agency

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