The MOFCOM also announced on Tuesday that China has initiated legal action against the US under the WTO dispute settlement mechanism regarding the latter’s latest tariff increase on Chinese products,

China will resolutely safeguard its legitimate rights and interests in accordance with WTO rules, and defend the multilateral trading system and the international economic and trade order, the ministry added.

The announcements came after the Global Times on Monday learned from a reliable source that China is studying and formulating relevant countermeasures in response to the US’ threat of imposing an additional 10 percent tariff on Chinese products under the pretext of fentanyl.

The countermeasures will likely include both tariffs and a series of non-tariff measures, and US agricultural and food products will most likely be listed, according to the source, who spoke on the condition of anonymity.

Justified reaction

Chinese Foreign Ministry spokesperson Lin Jian on Tuesday said that the US once again hiked tariffs on Chinese imports citing the fentanyl issue as an excuse, despite China’s repeated opposition. It is legitimate and necessary for China to take countermeasures to defend its rights and interests.

Lin reiterated that the Chinese people have never been swayed by fallacies, deterred by intimidation, or cowed by bullying. Pressuring, coercion or threat is not the right way to engage with China. Exerting maximum pressure on China is a mistargeted and miscalculated approach.

If the US really wants to settle the fentanyl issue, it needs to stand by the principles of equality, mutual respect and mutual benefit and engage in consultation with China to address each other’s concerns. If the US has other agenda in mind and insists on waging a tariff war, trade war or whatever war, China will not flinch and is ready to make due response. We urge the US to stop being domineering and return to the right track of dialogue and cooperation at an early date, said Lin.

“China’s countermeasures are completely proper and necessary, as the country is committed to maintaining the multilateral trade system and protecting its core interests,” He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Tuesday.

He noted that historically, most US tariff hikes have triggered countermeasures. “When the Trump administration announced the first 10-percent tariff on Chinese imports in February, China exercised restraint by imposing tariffs on US energy products rather than agricultural goods, hoping to leave room for negotiations,” he said.

“However, as the US continues escalating trade tensions with additional tariffs, we must respond with strong countermeasures,” He added.

While the US keeps intensifying trade friction with China citing the fentanyl issue, China’s State Council Information Office on Tuesday released a white paper, titled “Controlling Fentanyl-Related Substances — China’s Contribution,” highlighting the country’s rigorous control over the chemicals.

China has attached great importance to maintaining control over fentanyl-related substances in recent years, the white paper says.

The country has exercised strict supervision over fentanyl-related medications, rigorously prevented the abuse of fentanyl-related substances, and stricken hard against the smuggling, manufacturing, and trafficking of fentanyl-related substances and related precursor chemicals, it notes.

“China’s countermeasures are justified and indisputable, given the US’ unilateral trade measures and economic coercion that escalated trade tensions between the world’s two largest countries,” Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Tuesday.

The US should work with China to resolve trade disputes through equal-footed consultation, Lou Qinjian, spokesperson for the third session of the 14th National People’s Congress, China’s national legislature, said at a press conference in Beijing on Tuesday.

China stands ready to work with the US to address each other’s concerns through dialogue and consultation on the basis of mutual respect, equality, reciprocity and mutual benefit, but “will never accept any act of pressuring or threatening,” Lou said.

Multi-faceted response

In addition to the above responses over US tariff hikes on Chinese products, China’s Ministry of Commerce (MOFCOM) on Tuesday announced that it decided to add 15 US entities including Leidos on the export control list, effective on Tuesday, in order to safeguard national security and interests and to fulfill the international obligations of nonproliferation.

In addition, China has decided to add 10 US firms to the country’s unreliable entity list for arms sales to China’s Taiwan region or conducting so-called cooperation on military technologies with the island, according to the MOFCOM on Tuesday.

The US company Illumina, Inc has been banned from exporting gene sequencers to China, MOFCOM also announced Tuesday. The measure, effective immediately, follows China’s move to add the company to its unreliable entity list on February 4, according to the ministry.

Also on Tuesday, the MOFCOM announced that it has launched an anti-circumvention investigation into related US fiber optic products, marking the first time China has initiated such an investigation, after learning relevant fiber optic products are suspected of circumventing China’s anti-dumping measures. Based on the investigation’s findings, a decision will be made on whether to impose anti-circumvention measures against the US, the ministry said.

In addition, the General Administration of Customs (GAC) announced on Tuesday that it has suspended the qualifications of three US companies, including CHS Inc, to export soybeans to China, effective on Tuesday. The decision was made after Chinese customs detected the presence of ergot and seed-coating agents in imported US soybeans,and the move aims to protect the health of Chinese consumers and ensure the safety of imported grain, the GAC said.

The GAC also suspended the import of US logs effective on Tuesday to prevent harmful organisms and protect China’s agricultural and forestry production as well as ecological safety, after detecting forest pests such as bark beetles and longhorn beetles in imported US logs.

Instead of finding solutions to problems in the US’ domestic economy, the Trump administration resorts to imposing additional tariffs on its major trade partners. However, its protectionist practices violate WTO rules and damage the current international trade order, prompting strong countermeasures from other nations, Li said.

Canada is set to impose 25 percent tariffs on US goods valued at C$30 billion ($20.69) from Tuesday, with the remaining C$125 billion in tariffs coming into effect in 21 days, Canadian Prime Minister Justin Trudeau said on Monday.

“Our tariffs will remain in place until the US trade action is withdrawn, and if US tariffs remain, we are in ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau added, according to Reuters.

“In the process of escalating trade conflicts, the White House has miscalculated its trade partners’ demand for the US market,” Li said. As it becomes increasingly difficult for other countries to export to the US while shifting production to the US cannot address the root issue, other countries will be forced to seek a new non-US-dominated international trade structure with greater stability and reduced tariff uncertainty, he said.

By contrast, the US’ domestic economy and industrial structure will bear significant pressure, Li said, noting that Trump’s tariffs will fuel domestic inflation and harm US foreign trade-related industries, undermining US industrial competitiveness globally.

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