US Section 301 Investigation: A Double Betrayal of Multilateral Rules and US-China Leadership Consensus | Expert Hot Commentary

In today’s deeply interconnected global economic and trade landscape, multilateral rules remain the foundation for maintaining international order. However, the United States is determined to push forward with Section 301 investigations, attempting to impose unilateral tariffs again. Recently, the U.S. launched new “301 investigations” against several major trading partners worldwide, citing “overcapacity” as the reason, and may impose new tariffs based on the investigation results to replace previous tariffs that were rejected by the Supreme Court. This action not only violates WTO multilateral trade rules but also ignores the consensus reached by the leaders of China and the U.S. and the outcomes of the Kuala Lumpur trade and economic consultations. Such double deviation not only undermines the stability of China-U.S. economic and trade relations but also casts a shadow over global economic recovery. Essentially, it is unilateralism openly challenging the multilateral system.

The U.S. Trade Act of 1974, Section 301, is a typical product of domestic law overriding international rules, fundamentally opposing WTO regulations. Section 301 grants the U.S. Trade Representative unilateral authority to identify “unfair trade practices” and impose retaliatory tariffs, bypassing the multilateral dispute resolution process of the WTO. Historically, the WTO has ruled against U.S. measures under Section 301 in the case of China (DS543), with the European Union, Japan, Canada, and other WTO members joining China as third parties to clearly oppose U.S. unilateralism. This fully demonstrates that maintaining multilateral rules is a common goal of the international community. The U.S. did not appeal, which in effect admits the illegality of its actions.

U.S. unilateral actions are a blatant breach of the bilateral consensus between China and the U.S. In October 2025, significant progress was made during trade negotiations in Kuala Lumpur, where both sides agreed to extend the pause on reciprocal tariffs, suspend Section 301 measures on Chinese maritime logistics and shipbuilding industries, and relax some export controls. The U.S. explicitly stated its willingness to resolve differences with China through “equality and respect.” These achievements, reached through honest communication and mutual benefit, laid a foundation for cooling and stabilizing China-U.S. economic and trade relations. However, the U.S. immediately restarted the Section 301 investigation, clearly disregarding the cooperative tone established by the leaders’ meeting and risking the collapse of the Kuala Lumpur consensus. Such flip-flopping seriously erodes mutual trust in bilateral trade talks and exposes the true intent of “talking for show, suppressing in reality.”

It is well known that in February 2026, the U.S. Supreme Court, in a 6-3 decision, ruled that the tariffs imposed by the Trump administration under the International Emergency Economic Powers Act lacked legal basis and were invalid from the start. With domestic judicial rejection of the legality of these tariffs, the U.S. not only continued to tighten export controls and sanctions against Chinese companies but also attempted to revive Section 301 investigations. This “knowing violation of the law” seriously interferes with the implementation of the consensus between Chinese and U.S. leaders and damages the stability of China-U.S. economic and trade relations.

The U.S. unilateral tariff policy is essentially a shortsighted act of “hurting others while harming oneself.” Data shows that since 2018, over 90% of the costs of U.S. tariffs on China have been borne by American importers, retailers, and consumers, significantly increasing annual expenses for U.S. households and intensifying domestic inflation pressures. The U.S. International Trade Commission’s reports also confirm that the damage caused by Section 301 tariffs to U.S. domestic industries far exceeds any so-called “protective benefits.” Meanwhile, attempts by the U.S. to suppress China’s industrial upgrading through tariffs have failed; instead, U.S. agricultural and high-tech companies have lost access to the Chinese market, and supply chain stability has been severely impacted. This “killing two birds with one stone” trade bullying not only violates market economy principles but also faces widespread opposition from U.S. businesses and consumers.

In response to U.S. unilateral provocations, China has always maintained rational restraint, insisting on resolving differences through dialogue and consultation. However, this does not mean China will abandon its legitimate rights and interests. China has explicitly stated that if the U.S. insists on pushing forward with Section 301 investigations and tariffs, it will take all necessary measures to defend national interests, including filing complaints with the WTO. The essence of China-U.S. economic and trade relations is mutual benefit and win-win cooperation; cooperation benefits both sides, while confrontation harms both. Maintaining the stability of bilateral relations not only aligns with the fundamental interests of the peoples of both countries but is also a shared expectation of the international community.

(The author of this article is Li Yong, Executive Director of the China WTO Research Association)

(This article is from Yicai Global)