China warns US over forced labour tariffs

Washington, July 11 (IANS) China has warned that it could take retaliatory measures after the United States launched trade investigations targeting dozens of economies, including China, over forced labour and alleged industrial overcapacity.

The Chinese Embassy said Beijing was strongly dissatisfied with the US action and had lodged formal representations with Washington. It accused the US of abusing its domestic trade law and disrupting global supply chains.

“We will closely monitor the progress of the US investigation and reserve the right to take all necessary measures to firmly safeguard our legitimate rights and interests,” the Chinese Embassy said during a briefing for reporters Friday.

The US has launched Section 301 investigations against 16 economies, including China, citing “overcapacity,” according to the embassy. It has opened another investigation against 60 economies, including China, over allegations that they have not banned imports of goods made with forced labour.

“The World Trade Organization’s panel has already ruled that the US Section 301 tariff measures against China violate WTO rules,” the Chinese Embassy said.

“By once again abusing the Section 301 process and placing domestic law above international rules, the US is making a serious mistake, severely undermining the security and stability of global industrial and supply chains and seriously disrupting the international economic and trade order,” it said.

The warning came as Beijing and Washington continued talks on tariffs and sought to stabilise their economic relationship. The two sides have agreed to establish a Board of Trade to discuss reciprocal tariff reductions and other issues.

The Chinese Embassy said the two countries had set a goal of expanding two-way agricultural trade. They had also agreed in principle to include relevant agricultural products in a reciprocal tariff reduction framework.

“Businesses will conduct trade independently in accordance with market principles, based on actual demand and prevailing market conditions,” it said.

The embassy added that China was ready to work with the US to create favourable conditions for agricultural trade. Teams from both sides would remain in contact and encourage businesses to expand cooperation.

China also pushed back against US restrictions on Chinese companies. It accused Washington of excessively expanding the concept of national security, misusing state power and suppressing Chinese enterprises.

Beijing said it had placed 10 US entities involved in military activities on its export control list. The action prohibits exports of dual-use items to those entities.

The Chinese Embassy said the move was taken in response to the US adding what it described as “Chinese military companies” to its own list. Beijing said its action was intended to safeguard national security, protect its interests and meet non-proliferation obligations.

Section 301 of the US Trade Act of 1974 allows Washington to investigate foreign practices it considers unfair or discriminatory and to impose trade restrictions. The mechanism was used extensively to levy tariffs on Chinese imports during President Donald Trump’s first term.

The US and China have remained locked in disputes over tariffs, technology controls, subsidies and market access. Those tensions have periodically unsettled global markets because the two countries are the world’s largest economies and major trading partners.

–IANS

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