According to a report published on the WeChat official account China Council for the Promotion of International Trade on June 4, a spokesperson for the China Council for the Promotion of International Trade spoke regarding the US Trade Representatives initiation of the forced labor 301 investigation and the proposed tariffs.
On June 2 local time in the United States, the U.S. Trade Representative Office (USTR) issued an investigation based on Section 301 of the Trade Act of 1974. The investigation found that 60 economies failed to implement and effectively enforce measures prohibiting the import of products made using forced labor. As a result, USTR proposed imposing additional tariffs of 10% to 12.5% on these economies. China, including Hong Kong, was listed among the economies subject to the 12.5% tariff rate. The Chinese business community expressed strong dissatisfaction and outright opposition to this decision.
It is important to note that this investigation covers 60 economies, involving major global trading partners, with a wide range of impacts. The US initiated the 301 investigation on the grounds of failure to establish and effectively enforce prohibitions against the import of forced labor. In essence, the US seeks to apply domestic standards and unilateral rules to other economies. This approach lacks any legal basis under international law and goes against the rules of the multilateral trading system. The US conclusions regarding these measures, such as weakening efforts to eliminate forced labor and distort market competition, lack sufficient factual support. These measures involve policy pressures through tariffs, reflecting a clear tendency towards unilateralism and protectionism. The differential tax arrangements clearly violate the principles of non-discrimination and fair competition.
The Chinese business community calls on the US to respect objective facts, stop overgeneralizing and abusing trade restrictions, and return to a rules-based multilateral trading system. It urges both sides to resolve economic and trade differences through dialogue and negotiation, thereby jointly maintaining the stability of global industrial and supply chains. The China Council for the Promotion of International Trade will continue to play a role as a bridge between both sides, supporting businesses in strengthening compliance measures and risk management efforts. It also encourages closer practical cooperation between Chinese and US businesses, as well as those from other countries.
