Commerce Ministry Delivers Unified Response Against Trade Protectionism

Deep News
Aug 21

On August 20, Commerce Ministry spokesperson He Yadong delivered a consolidated response to recent trade protection measures imposed on China by the United States and the European Union. The remarks came after a series of actions that have raised concerns in global trade circles.

President Donald Trump recently signed a proclamation imposing tariffs ranging from 10% to 100% on imported drones and their components, citing national security threats. In response, He Yadong stated that the Commerce Ministry has taken note of the U.S. decision to levy Section 232 tariffs on drones and related parts. China has consistently held that such measures are a form of unilateralism and protectionism disguised under the banner of national security. In reality, Chinese drones exported to the U.S. are primarily used in civilian applications, including agriculture, equipment inspection, and film and entertainment production.

The U.S. Section 232 measures, by overstretching the concept of national security and applying differentiated tariff rates to trading partners, are discriminatory against Chinese products. These actions seriously undermine the interests of Chinese enterprises, disrupt the global drone supply chain and production cooperation, and further erode the fair competitive environment in the market. China firmly opposes these measures and urges the U.S. to immediately revoke the Section 232 tariff actions.

In a separate development, the White House Office of Trade and Manufacturing Policy recently released a report titled "The Massive Transshipment Scam: Origins, Scale, and Costs," which alleges that China has been routing goods through third countries to evade U.S. tariffs and other restrictions, thereby impacting the American economy. He Yadong dismissed the report as one that "ignores facts and distorts the truth," accusing it of labeling normal international trade and investment as a "scam" and fabricating a false narrative about a so-called "shadow transshipment network." He characterized this as a typical example of unilateralism and protectionism aimed at suppressing and blocking Chinese products.

In truth, it is the U.S.'s own high and differentiated tariffs that pose the fundamental threat to the security of global supply chains, He argued. Attributing domestic economic problems to external factors will not resolve the deep-seated issues within the U.S. economy. China demands that the U.S. immediately cease its irresponsible accusations and its disruptions to Sino-U.S. economic and trade relations, and take concrete steps to safeguard the security and stability of global supply and production chains.

Turning to the European Union, the EU has recently, in the context of the JD.com case, unreasonably demanded extensive and voluminous information unrelated to the investigation from Chinese financial institutions operating within China. On August 19, China issued another injunction order against the EU's cross-border investigation practices targeting Chinese entities under the Foreign Subsidies Regulation (FSR). He Yadong explained that China's relevant government departments, after thorough investigation and in accordance with the Regulations on Countering Unjustified Extra-territorial Application of Foreign Legislation and Other Measures, have determined that the EU's cross-border investigative practices against the relevant Chinese entities in the FSR probe constitute unjustifiable extraterritorial jurisdiction. Consequently, all organizations and individuals are prohibited from executing or assisting in the execution of these measures.

China and the EU have already established the Trade and Investment Consultation Mechanism (TIC) and have reached a consensus on managing differences through dialogue and consultation. He expressed hope that the EU will work with China in the same direction, promptly correct its erroneous practices in the FSR investigation, and enhance communication through intergovernmental dialogue. China will closely monitor the EU's actions and will take necessary measures to resolutely safeguard national security and the legitimate rights and interests of Chinese enterprises.

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