China denounces U.S. Section 301 probe as "typical unilateralism"

The Financial News reported that the government of China, facing a new tariff offensive from the United States of America (USA), has sharply criticized it as "typical unilateralism." Beijing added that it is closely monitoring the situation and stressed that it has the right to respond in order to protect its interests.
On the 13th, the Ministry of Commerce of the People's Republic of China (MOFCOM) issued a Q&A-style statement through its spokesperson addressing the USA investigation under Section 301 of the Trade Act of 1974. MOFCOM stated, "The Section 301 investigation is a typical unilateralist measure that seriously undermines the international economic and trade order," adding, "Experts at the World Trade Organization (WTO) have already ruled that tariff measures based on Section 301 investigations violate WTO rules."
The Office of the United States Trade Representative (USTR) announced on its website on the 11th that it would launch an investigation under Section 301 of the Trade Act of 1974 into allegedly unfair trade practices by 15 countries, including the Republic of Korea, China, and Japan, as well as the European Union (EU). Enacted in 1974, Section 301 of the Trade Act of 1974 allows the USA to retaliate with measures such as import bans or additional tariffs when a trading partner's unfair systems or discriminatory practices harm U.S. companies. To trigger retaliation, USTR must first conduct an investigation into the alleged unfair practices, which typically concludes within one year. USTR has pointed to the possibility of "overcapacity," noting that the Republic of Korea, China, and others continue to run trade surpluses with the USA.
In response, MOFCOM argued, "The world economy has already become an integrated structure, and both production and consumption take place on a global scale." It noted, "If each country's production were required to meet only its domestic market demand, cross-border trade could not exist at all."
MOFCOM further stressed, "It is a narrow view for the USA to unilaterally label production capacity that exceeds its own domestic demand as overcapacity and to stigmatize it in this way." It also asserted, "The USA has no authority, through a Section 301 investigation, to unilaterally determine whether its trading partners have 'excess production capacity' and then impose restrictive measures."
On the 12th, USTR also announced that it was launching another investigation under Section 301 of the Trade Act of 1974 into the acts, policies, and practices related to forced labor in a total of 60 countries, including the Republic of Korea and China. Regarding the fact that USTR initiated two separate Section 301 investigations within two days, China's MOFCOM stated that it is "currently analyzing and assessing the relevant situation."
MOFCOM declared, "We urge the USA to correct its wrongful measures and return to the right track of resolving issues through dialogue and negotiation." At the same time, it asserted, "China is closely following how the situation develops and reserves the right to take all necessary measures to safeguard its legitimate rights and interests."
pjw@fnnews.com Park Jong-won Reporter