In a significant escalation of trade tensions, China has initiated dual investigations into United States trade practices that Beijing alleges are disrupting global supply chains and unfairly targeting its green technology exports. The Chinese Ministry of Commerce announced on March 27 that these probes will examine whether US measures—including import restrictions, export controls, and investment limitations—have adversely affected Chinese enterprises and hindered the development of renewable energy sectors.
The investigations represent a direct response to the US Trade Representative’s recent Section 301 investigations launched in early March, which targeted 16 economies for industrial overcapacity in steel, semiconductors, and automobiles, plus 60 additional economies over alleged forced labor practices. Although framed as broad actions, analysts note these measures predominantly focus on China.
China’s commerce ministry spokesperson expressed strong opposition to the US actions, stating: “China is strongly dissatisfied with and firmly opposed to the USTR’s actions. We will proceed with investigations according to China’s Foreign Trade Law and take corresponding measures to safeguard our legitimate rights and interests.”
Two primary investigation areas have been identified:
1. Global Supply Chain Disruptions: Preliminary evidence suggests the US has implemented measures restricting Chinese market access, limiting high-tech exports to China, and curbing bilateral investment in critical sectors.
2. Green Trade Barriers: Initial findings indicate US actions have restricted green product exports, delayed renewable energy project deployment, and limited technological cooperation in sustainable industries.
The ministry contends these practices may violate WTO regulations and bilateral trade agreements, potentially causing significant harm to Chinese commercial interests. Investigation methods will include questionnaires, hearings, and on-site inspections, with completion expected within six months (extendable to nine months in special circumstances).
This development follows President Trump’s March 26 social media announcement of planned China visits on May 14-15, though Beijing hasn’t confirmed these dates. The original March 31 meeting was postponed following US-Israeli strikes against Iran.
Analysts suggest China’s investigation strategy leverages its substantial market influence—with 2025 goods trade totaling $6.3 trillion—and increasingly diversified trade relationships with ASEAN, Africa, and Latin America, reducing US dependency and enhancing resilience against trade restrictions.
The current trade truce between Trump and Xi, set to expire November 10, 2026, coincides with US midterm elections on November 3, creating political pressure to avoid escalating tensions that might destabilize the economy and impact Republican congressional control.
This isn’t China’s first trade-barrier investigation against the US. A 2011 probe into American renewable energy subsidies concluded the measures violated WTO rules, though subsequent US tariffs on Chinese solar panels prompted manufacturers to relocate production to Southeast Asia.
The announcement follows China’s recent completion of a separate trade investigation into Mexico’s tariff increases (up to 35%) on imports from non-free-trade agreement countries, which particularly affected China’s automotive sector with estimated $9 billion losses. Mexico’s alignment with US trade objectives reflects the complex dynamics of North American supply chain integration under the US-Mexico-Canada Agreement.