The trade war between the world's two largest economies is entering a new phase.
On Friday, China's Ministry of Commerce officially announced the launch of two large-scale investigations into US trade practices. This move was a direct response to recent actions by the Donald Trump administration, Bloomberg reports.
These Chinese measures hit the same sensitive areas that the US is exploiting against China. Each of the two new investigations must be completed within six months, with the possibility of an additional three months. This creates a legal basis for Beijing to impose retaliatory tariffs and provides powerful leverage in the upcoming negotiations.
The first investigation is aimed at comprehensive US restrictions. Beijing intends to prove the illegality of barriers to access for Chinese goods in the US market, export controls on advanced technologies, and limits on bilateral investment in critical sectors.
The second investigation focuses on discrimination against Chinese clean technologies. China accuses the US of blocking imports of renewable goods and artificially limiting cooperation in green technologies. The Department of Commerce emphasized that the US actions directly violate World Trade Organization rules and bilateral agreements signed by both countries.
Beijing's abrupt move came just days after the White House announced Donald Trump's visit to China in mid-May. A personal meeting with Chinese President Xi Jinping was postponed due to the US military conflict with Iran.
Relations between the countries remain difficult. Despite stabilization following last year's tariff exchange, Trump's new initiatives have reignited the conflict. Furthermore, relations are clouded by China's record trade surplus, reaching $1.2 trillion, and continued US arms sales to Taiwan.