Post by : Rameen Ariff

In light of escalating tensions, China has urged the United States and associated businesses to acknowledge the facts, adhere to global trade regulations, and cease actions that could harm its national interests. This follows President Donald Trump’s warning of a potential 100% tariff on Chinese imports.

Lin Jian, a spokesperson for the Chinese Foreign Ministry, stated, “We call upon the US and relevant companies to respect facts and multi-lateral trade norms, honor market economy principles, and fair competition, and promptly rectify their misguided actions to halt any damage to China’s interests.”

This statement follows the Chinese Ministry of Commerce (MOFCOM) enforcing sanctions against five subsidiaries of Hanwha Ocean Co., based in the U.S. The sanctions are a countermeasure to the U.S. Section 301 investigation and its various actions aimed at China’s maritime and shipbuilding industries.

China’s Order No. 6 of 2025 critiques the U.S. Section 301 measures, stating they “seriously contravene international law and infringe on fundamental norms of international relations, undermining the legitimate rights of Chinese businesses.” The targeted firms include Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.

The Transport Ministry of China has initiated an inquiry into the implications of the U.S. Section 301 measures on the stability and growth of its shipping and shipbuilding sectors, alongside associated industrial and supply chains, according to reports from Xinhua.

As trade relations sour, the Foreign Affairs Ministry's statement highlights a backdrop of increasing restrictions from both sides. Recently, China announced new port fees for U.S. vessels arriving at its ports, set to begin on October 14, starting at 400 yuan (approximately USD 56) per net ton and escalating annually for the next three years. Beijing has framed this decision as a direct response to similar charges that the U.S. has levied on Chinese ships, branding Washington's actions as violations of World Trade Organization regulations and the bilateral maritime agreement.

Earlier, Trump made headlines by announcing an additional 100% tariff on Chinese imports starting November 1, which would cumulatively increase duties on these goods to 130%. Trump also mentioned tightening export controls on vital software and technology, accusing China of a “hostile” trading posture.

In reaction, China has defended its export controls on rare earth materials as legitimate measures to enhance export management and safeguard national security. It has criticized the U.S. for its “double standards” and misuse of export control measures against Chinese enterprises, asserting, “The U.S. cannot negotiate on one hand while simultaneously imposing new restrictions on the other.”

Since the last round of trade discussions in Madrid, Beijing accused the U.S. of escalating pressure by adding more Chinese entities to the Entity List and broadening Section 301 measures to encompass the shipbuilding industry. China contended these actions have “seriously jeopardized” its interests and created a hostile environment for trade negotiations.

The Chinese administration has called on Washington to “rectify its erroneous practices” and to manage differences via dialogue, stressing the importance of stable and sustainable bilateral relations. The Ministry reaffirmed China’s stance against seeking a trade war while indicating readiness to defend its interests.

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