Beijing launches two reciprocal trade probes after commerce minister meets with US trade representative
Chinese and US officials continue to push for stabilization – but the cracks are widening.
On March 26, Commerce Minister Wang Wentao met with US Trade Representative Jamieson Greer on the sidelines of the WTO's 14th Ministerial Conference in Yaoundé, Cameroon.
TL;DR: The discussion looked largely steady-as-she-goes following the last round of China-US trade negotiations in Paris on March 15-16.
Wang said (MofCom 1):
- "Trade and economic relations should continue to be the ballast and engine of China-US relations, not a stumbling block or point of conflict."
Greer said:
- "The US is willing to work with China...to strengthen dialogue and promote the sustained and stable development of US-China trade relations."
There's just one problem: Wang raised “serious concerns” over Washington's recent Section 301 investigations into multiple trade partners – including China – regarding overcapacity and forced labor concerns.
Then, a Friday afternoon surprise: Just as we were going to press, Beijing fired back with two trade probes of its own – one targeting US measures that disrupt global supply chains, another targeting restrictions on green trade (MofCom 2, MofCom 3).
Our take: For now, it's in both sides' interests to try to ringfence the probe/counter-probe dynamic as a managed irritant as they focus on broader bilateral stabilization.
- But as each day passes without a summit to lock in a more durable agreement, the risk of issues like these slipping their leash increases.