【By Observer Net, Wang Kaiwen】 After a series of tariff policies were overturned by the U.S. Supreme Court, the Trump administration, undeterred, announced on March 11 local time that it would initiate Section 301 investigations against China, the European Union and other trade partners, attempting to continue imposing tariffs.

Hong Kong's South China Morning Post reported on the 12th. In the view of analysts, for China, Trump's move is just an empty threat, trying to increase leverage for his planned visit to China. However, these tactics are unlikely to work on China, as China has long seen through and become accustomed to his "art of deals."

"This action taken by Trump before his visit to China was calculated, aiming to send a signal to his domestic supporters before the midterm elections: I am going to Beijing with investigations and leverage, and I will not compromise," said Fu Weigang, president of the Shanghai Institute of Finance and Law.

He added, "China knows this is a product of U.S. domestic politics, so it is not surprised. For many years, Chinese exporters have been facing such strategies, and they have become more resilient."

On March 11 local time, the Trump administration used the so-called Section 301 (a common name for Article 301 of the U.S. Trade Act of 1974) to launch investigations against 16 trade partners, including China, India, Japan, Mexico, the EU and several Southeast Asian countries, to determine whether they have gained unfair advantages through "structural overcapacity and production practices."

If the U.S. determines that such situations exist, Washington would have the legal basis to raise tariffs on relevant economies. During Trump's first term, the U.S. had initiated a Section 301 investigation against China, which sparked the Sino-U.S. trade war.

On February 20, just a few weeks before the new investigation was launched, the U.S. Supreme Court ruled that the tariffs introduced by Trump last year through declaring a national emergency were invalid. This ruling reduced the tariff rates on Chinese goods and essentially deprived Trump of the ability to arbitrarily increase tariffs.

On February 20 local time, Trump announced that he would impose a 10% import tariff on global goods based on the U.S. Trade Act of 1974, Article 122. IC Photo

But Trump quickly announced a 10% global import tariff for a period of 150 days, later raising the rate to 15%. At the same time, he threatened to further increase tariffs through other legal channels, with Section 301 being one option.

In Fu Weigang's view, the timing of Trump's new Section 301 investigation may not be a coincidence. Previously, the U.S. stated that Trump plans to visit China at the end of March.

Fu Weigang said that the U.S. Supreme Court's ruling was seen as giving China more leverage in trade negotiations. "Trump needs to prepare leverage for his visit to China to consolidate his position - he will label any agreement as a victory," he said.

Xu Weijun, a deputy researcher at the School of Public Policy at South China University of Technology, believes that the Trump administration's move is unlikely to have much impact on Sino-U.S. negotiations.

"Chinese negotiators are well-prepared. They know that 'Section 301 tariffs' won't be implemented soon - at least not before or during Trump's visit to China, because launching an investigation and reaching a conclusion takes time. Such empty threats may not work," Xu said.

According to White House information, Trump will visit Beijing from March 31 to April 2. This is his first visit to China since 2017.

According to the South China Morning Post, Vice Premier He Lifeng of the State Council of China and U.S. Treasury Secretary Janet Yellen will hold talks in Paris over the weekend. Sources revealed that Chinese and U.S. officials will discuss potential trade and investment agreements covering tariffs, soybeans, and rare earths, which may be announced as results during the meeting between the two heads of state.

In Xu Weijun's view, as Trump threatens to restore tariffs through other legal avenues and initiate related procedures, China's negotiation strategy may have already changed.

At the Ministry of Foreign Affairs regular press conference on March 12, spokesperson Guo Jianjun responded to the U.S. initiating a new trade investigation, stating that China's position on handling Sino-U.S. economic and trade issues has always been consistent and clear, opposing all forms of unilateral tariff measures. A tariff war and trade war do not benefit any party, and both sides should resolve the issues through consultations on the basis of equality, respect, and mutual benefit.

"The so-called overcapacity is a false proposition, and China opposes political manipulation under this pretext," Guo said.

Regarding the progress of preparations for Trump's visit to China, Guo said: "China and the U.S. maintain communication on interactions between the heads of state. Regarding the specific issues you mentioned, I currently have no information to provide."

This article is exclusive to Observer Net, and without permission, it cannot be reprinted.

Original: toutiao.com/article/7616381429722726938/

Statement: The article represents the views of the author."