US Initiates Section 301 Investigation Against 16 Economies Including China; Commerce Ministry Responds

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The Beijing News: The Ministry of Commerce spokesperson responded to questions from reporters regarding the U.S. Office of the United States Trade Representative’s announcement to initiate Section 301 investigations against 16 economies, including China, on the grounds of “overcapacity.”

A reporter asked: On March 11, Eastern Time, the U.S. Trade Representative announced the initiation of Section 301 investigations against 16 economies, including China, citing “overcapacity.” What is China’s comment on this?

Answer: China notes that the U.S. has launched Section 301 investigations against 16 economies, including China, on the grounds of “overcapacity.” Section 301 investigations are typical unilateral actions that severely undermine the international economic and trade order. WTO expert panels have already ruled that the tariffs imposed based on Section 301 investigations violate WTO rules.

Regarding the so-called “overcapacity theory” by the U.S., China has repeatedly clarified its position. The global economy has long become an inseparable whole; production and consumption are global phenomena that require supply and demand matching and adjustment on a worldwide scale. If a country’s production can only meet domestic demand, there would be no cross-border trade. The U.S. cannot narrowly define production capacity exceeding domestic demand as “overcapacity” and label it as such. Moreover, the U.S. has no right to unilaterally determine whether there is “overcapacity” among trade partners through Section 301 investigations and to impose unilateral restrictions. China also notes that the U.S. has initiated a Section 301 investigation against 60 economies, including China, citing “not banning forced labor products.” China is currently analyzing and evaluating this.

China urges the U.S. to correct its wrongful practices and return to the correct path of resolving issues through dialogue and consultation. China will closely monitor the developments and reserves the right to take all necessary measures to firmly defend its legitimate rights and interests.

Editor: Li Yilin

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