Tensions between the United States and China have escalated significantly following Washington’s initiation of new Section 301 trade investigations, prompting Chinese commentators to warn of potential retaliatory measures including restrictions on rare-earth exports and suspension of soybean purchases.
The United States Trade Representative announced simultaneous investigations into 16 nations’ trade practices and 60 economies regarding forced labor imports, specifically mentioning Xinjiang cotton among concerning products. This move has been characterized by Chinese observers as “trouble-making” ahead of the anticipated summit between President Xi Jinping and former President Donald Trump scheduled for late March or early April.
Officially, China’s Commerce Ministry spokesperson stated that Beijing has fulfilled its obligations under the Phase One Agreement signed in January 2020, including commitments on intellectual property protection and market access reforms. The spokesperson accused the US of violating the agreement’s spirit through export controls, investment restrictions, and continuous escalation of trade measures since early 2020.
The diplomatic exchange occurs amid preparations for the upcoming leadership summit, with US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng scheduled to meet in Paris from March 14-17 to establish groundwork for the high-stakes discussion.
Chinese commentators highlighted Beijing’s potential leverage points, noting that the US military’s Middle East operations have increased demand for critical minerals where China maintains dominant market position. Industry experts estimate US defense contractors may only possess months—not years—of rare-earth stockpiles, with production lines for advanced weaponry including F-35 stealth fighters dependent on Chinese-supplied components.
The Section 301 investigations target China alongside the EU, Singapore, Switzerland, and 12 other economies, focusing on sectors where China maintains substantial trade surpluses including electronics, machinery, automobiles, steel, and batteries. The USTR cited evidence suggesting China’s industrial capacity is rising, accounting for 54% of global excess steel capacity in Q3 2025.
Separate forced labor investigations encompass 60 economies, building upon previous additions to the List of Goods Produced by Child Labor or Forced Labor that currently includes 34 downstream goods connected to forced labor allegations.
China’s Foreign Ministry dismissed forced labor claims as “disinformation” and condemned unilateral tariff measures, while warning that Beijing would “take all necessary measures to firmly safeguard its lawful rights and interests” if the US proceeds with tariffs or restrictive measures.