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Economy February 25, 2026

China Says It Fulfilled 301 Commitments, Warns U.S. Against New Tariffs

Beijing urges dialogue through bilateral trade consultations after USTR signals fresh Section 301 probes

By Derek Hwang
China Says It Fulfilled 301 Commitments, Warns U.S. Against New Tariffs

China announced it has met obligations tied to the U.S. Section 301 trade statute and urged Washington not to pursue further punitive measures, after the U.S. Trade Representative indicated ongoing investigations that could result in more tariffs. Beijing said it prefers to resolve issues through existing economic and trade consultation channels but will defend its interests if the U.S. moves ahead with investigations and restrictions.

Key Points

  • China says it has met obligations tied to the U.S. Section 301 statute and referenced a 2020 agreement with Washington.
  • U.S. Trade Representative Jamieson Greer indicated ongoing Section 301 probes involving China and Brazil that could result in tariffs if unfair practices are found.
  • Beijing prefers to address issues via the bilateral economic and trade consultation mechanism but warned it would defend its rights if investigations lead to restrictive measures - sectors affected include international trade and export-oriented industries.

China stated on Wednesday that it has already fulfilled commitments associated with the United States' Section 301 unfair trade practices framework, responding to recent comments from U.S. trade officials that signalled continued scrutiny under that law.

A spokesperson for China's Commerce Ministry reiterated that Beijing reached an agreement with the United States in 2020 addressing matters connected to Section 301. The spokesperson urged the U.S. not to "shift responsibility" or "provoke trouble," and said China expected Washington to recognise that the accord had been carried out.

The comments come after U.S. Trade Representative Jamieson Greer said last week that his office would maintain probes under Section 301 involving China and Brazil, among other economies. Greer indicated those investigations could lead to additional tariffs if investigators found unfair trading practices.

China's Commerce Ministry said Beijing is prepared to engage with the United States through the established economic and trade consultation mechanism between the two countries. The ministry added that if the U.S. insists on progressing the investigations and enacting restrictive measures, China would take action to defend its rights and interests.

The exchange frames a diplomatic choice for both capitals: press ahead with investigative and potential retaliatory steps under Section 301, or continue to settle differences within bilateral consultation channels. China's statement emphasised implementation of the 2020 understanding and stressed the availability of the consultation platform for resolving remaining issues.

Officials on both sides have signalled different pathways. On one hand, U.S. trade authorities have made clear they will pursue probes that could trigger tariffs if unfair practices are identified. On the other hand, Beijing has underscored its view that prior commitments have been met and advocated using the formal consultation mechanism to address outstanding concerns.

In its public remarks the Commerce Ministry framed the situation as one in which China prefers dialogue but is prepared to protect its interests should the United States move toward additional restrictive measures arising from the Section 301 process.

Note: This report is based solely on statements attributed to China’s Commerce Ministry and the U.S. Trade Representative as described above.

Risks

  • The U.S. could advance investigations under Section 301 and impose additional tariffs, creating uncertainty for exporters and trade-dependent sectors.
  • If consultations do not resolve differences and restrictive measures are applied, markets sensitive to trade policy could face volatility.
  • Diplomatic friction may persist if either side views prior agreements as unimplemented or insufficient, complicating bilateral trade relations.

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