China Demands US Cancel Additional Section 301 Tariffs

The Chinese Ministry of Commerce has demanded that the US reverse its decision to impose additional tariffs on Chinese companies for the export of polysilicon and silicon wafers under Section 301 as its actions violate the World Trade Organization (WTO) rules. 

Speaking to local media reporters, the Commerce Ministry spokesperson said that despite the WTO directive, the US continues to violate the rules. The latest move to raise the Section 301 tariffs is a ‘mistake on top of a mistake.’ China is prepared to take necessary measures to defend its own rights and interests.  

The US Trade Representative (USTR) had earlier this month increased the tariff rate on polysilicon to 50% and also slapped a similar tariff on silicon wafers imported from China under Section 301, among other products. These rates will come into effect from January 1, 2025 (see US Raises Section 301 Tariffs On Chinese Polysilicon, Brings In Wafers Too).  

While the US said this move is aimed at supporting its domestic manufacturers, China does not think it will solve the problem by imposing tariffs on its companies. 

According to the Chinese spokesperson, “The US tariff measures will not only fail to solve the US trade deficit and industrial competitiveness problems, but will also push up domestic inflation in the US, harm the interests of US consumers, and seriously undermine the international economic and trade order and the security and stability of the global industrial chain and supply chain.” 

China says it continues to oppose ‘unilateral tariff measures,’ something the WTO believes it has seen a sharp rise of among its member nations between October 2023 and October 2024. In its recent Trade Monitoring Report, the WTO says that there has been an increase in trade restrictions against the backdrop of unilateral policies. These ‘inward-looking’ trade policies could generate further uncertainty for the world economy.