U.S.' restrictive trade moves to be self-harming

China has called on the United States to adhere to international rules and end misguided policies, warning that it will take necessary measures to safeguard its legitimate rights, the Ministry of Commerce said on Sunday.

On Friday, the Office of the United States Trade Representative invited comments from the public on proposed Section 301 actions aimed at China's maritime, logistics and shipbuilding sectors.

The U.S.' proposed restrictive measures, such as levying port fees, would be self-harming and have detrimental effects, according to an online statement issued by the Commerce Ministry.

The statement said these moves would not only fail to revive the U.S. shipbuilding industry, but also increase transportation costs on U.S.-related shipping routes and intensify domestic inflationary pressures.

The moves would diminish the global competitiveness of U.S. goods and negatively affect the interests of U.S. port and terminal operators, as well as their workers, it added.

Since March 2024, China and the U.S. have held multiple rounds of talks on the proposed actions. China has repeatedly expressed its stance on the Section 301 investigation, urging the U.S. to be rational and objective, and to stop blaming China for its own industrial development issues.

The ministry noted that a panel of the World Trade Organization has ruled that U.S. imposition of Section 301 tariffs on China is in breach of WTO regulations. The misuse of the Section 301 investigation mechanism, driven by the U.S.' domestic political needs, continues to erode the multilateral trading system, the ministry said.

Liao Fan, a professor of international law at the University of Chinese Academy of Social Sciences in Beijing, said that to counter rising protectionism and the weaponization of unilateral sanctions, WTO reform is urgently needed to address systemic issues, such as chronic underfunding and weak enforcement mechanisms.

John Quelch, executive vice-chancellor of Duke Kunshan University in Kunshan, Jiangsu province, warned that international trade is entering a dangerous "Wild West" era, in which weaker economies and small countries more dependent on international trade are likely to suffer the most.

"China needs to redouble its efforts to increase trade with Global South countries, gradually reducing dependence on traditional markets," Quelch said, adding, "China should further stimulate domestic consumption if a global tariff war slows down international trade."

Guangxi Yuchai Machinery Co, an automotive engine manufacturer in Yulin, Guangxi Zhuang autonomous region, is already expanding into emerging markets.

"We have leveraged multiple cooperation mechanisms and trade deals, such as the Belt and Road Initiative and the Regional Comprehensive Economic Partnership, to actively participate in international trade shows and establish new plants in Thailand and Vietnam in recent years. Our export value jumped 73 percent year-on-year in January, hitting a record high for a single month," said Liu Hongbo, president of marketing at Guangxi Yuchai's overseas business unit.

"We have broadened our customer base in key regions, including Southeast Asia and the Middle East, while diversifying our market structure to reduce risks associated with overreliance on any single market," Liu added.