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With a high-stakes summit in Beijing less than three weeks away, the U.S. has launched sweeping trade investigations that put China squarely in its crosshairs, adding a new layer of friction to an already complicated relationship.
The probes, which will be conducted under Section 301 of the Trade Act of 1974, aim to identify unfair trade practices, particularly structural excess capacity and production in manufacturing sectors.
The 301 investigation, while casting a wide net over a dozen trading partners, takes a clear aim at China, given its well-documented issues such as overcapacity and forced labor, said Dan Wang, China director at the political consultancy Eurasia Group.
As Trump’s negotiating position has been weakened by the military aggression in Iran, “U.S. needs to establish credible threat on tariffs as it remains Trump’s top pressure tool,” Wang said, although Beijing was likely unsurprised by the escalation.
