China's Ministry of Commerce Condemns U.S. Tariffs Citing 'Forced Labor'

China's Ministry of Commerce issued a statement on July 27, strongly opposing new U.S. tariffs imposed on multiple trading partners, including China, under the pretext of 'forced labor.'

On July 24, the United States announced new tariffs ranging from 10% to 12.5% on imports from 60 trading partners, claiming these countries have failed to effectively prevent products linked to forced labor from entering the U.S. market. China is subject to the highest rate of 12.5%, marking a significant expansion of U.S. trade restrictions targeting major economies such as the European Union and China.

The Chinese Ministry of Commerce emphasized that the U.S. has long manipulated the 'forced labor' issue for political purposes. It criticized the latest move—triggered by a Section 301 investigation—as a typical act of unilateralism and protectionism. China reiterated its firm opposition to all forms of forced labor and stated it has established a comprehensive legal framework to prevent and combat such practices. In contrast, the U.S. has yet to ratify the 1930 Forced Labour Convention, highlighting what China calls American hypocrisy.

The Ministry also noted that during previous trade negotiations, the U.S. committed to keeping alternative tariffs on Chinese goods below 20%. While the new 12.5% tariff falls within this limit, China maintains the approach is fundamentally flawed and must be corrected. It warned that China will continue to assess U.S. actions and reserves the right to take all necessary countermeasures.

This development comes at a fragile stage of U.S.-China trade relations, coinciding with preparations for a potential visit by Chinese President Xi Jinping to the U.S. in September 2023. The new tariffs could further destabilize bilateral economic engagement.

The Ministry urged the U.S. to return to dialogue, respect prior agreements, narrow differences, and expand cooperation lists on the basis of mutual respect and equal benefit.