China on Friday criticized a U.S. trade investigation into alleged industrial overcapacity, warning that it may take countermeasures. The dispute adds uncertainty ahead of a new round of trade negotiations scheduled to begin this weekend.
In a statement, China’s Ministry of Commerce argued that the United States does not have the authority to unilaterally determine whether a trading partner has excess industrial capacity through its Section 301 investigation, nor impose restrictive trade measures based on that assessment.
U.S. Investigations Target China
Earlier this week, the United States announced investigations into industrial overcapacity and alleged forced labour practices, naming China as one of the countries under scrutiny.
Beijing responded by stating that it is reviewing the investigations and reserves the right to take all necessary steps to protect its economic interests.
At the same time, China’s Foreign Ministry rejected the forced labour allegations, with a spokesperson describing the accusations as false claims created by the United States.
Trade Dispute Looms Ahead of Key Talks
The latest tensions add another challenge to the already complex trade relationship between the United States and China, as both countries prepare for upcoming diplomatic meetings.
The discussions are particularly significant ahead of U.S. President Donald Trump’s planned visit to Beijing at the end of March, where he is expected to meet with Chinese President Xi Jinping.
Paris Talks to Prepare for Trump–Xi Meeting
China confirmed that Vice Premier He Lifeng will lead a delegation to France from March 14 to March 17 for trade negotiations with U.S. officials.
The American delegation is expected to include Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
These meetings are intended to lay the groundwork for the upcoming Trump–Xi summit, with both sides seeking to address key economic and trade issues.
Ongoing Trade Tensions Between the U.S. and China
The upcoming negotiations mark the sixth round of talks since the United States imposed new tariffs on Chinese goods last year.
Following those measures, Beijing responded with export restrictions on critical minerals and its own tariff increases, pushing duties on bilateral trade to extremely high levels.
However, a temporary truce reached during earlier negotiations and a leaders’ summit in South Korea in October helped both countries roll back most of those trade restrictions.
Despite those efforts, the U.S.–China trade relationship remains fragile, with ongoing disagreements over industrial policy, supply chains, and market access.
