On March 11, the United States launched a new trade investigation under Section 301 concerning China’s industrial overcapacity.
According to the Office of the U.S. Trade Representative, the aim of the investigation is to determine whether the policies and practices of China and 15 other economies related to “structural overcapacity and excess production capacity” are unreasonable or discriminatory and whether they harm U.S. commerce.
Washington said that consultations with the relevant governments will take place as part of the process. Public comments may be submitted until April 15, while hearings will begin on May 5.
The U.S. government made this decision at a time when manufacturers in China’s export hubs were reporting increased activity amid the temporary reduction of U.S. tariffs. In particular, according to Reuters, some factories were trying to make the most of the temporary relief, accelerating both product shipments and expansion plans.
According to U.S. Trade Representative Jamieson Greer, these investigations are part of the Trump administration’s broader economic policy aimed at strengthening domestic manufacturing capacity and curbing foreign overproduction.
At the same time, this step indicates that despite the temporary easing of tariffs, Washington continues to employ new mechanisms of pressure in its trade confrontation with China.
Author: Mariam Simsive
