Ministry: US Section 301 tariffs will evoke firm response

China strongly opposes the United States' imposition of Section 301 tariffs on Chinese semiconductor products and will respond with necessary measures to safeguard its interests, said the Ministry of Commerce on Thursday.

The Office of the United States Trade Representative announced earlier this week that the US will raise tariffs on Chinese semiconductor imports on June 23, 2027, with a rate to be announced not fewer than 30 days prior to that date. Until then, the tariff will remain at zero for an 18-month transition period.

Speaking at a weekly news briefing, He Yongqian, a spokeswoman for the Ministry of Commerce, said China has noted the move and lodged stern representations with the US through their economic and trade consultation mechanism, saying China rejects the conclusions of the US Section 301 investigation.

The commerce official said that the unilateral US tariffs violate World Trade Organization rules, undermine the international trading system and disrupt global supply chains, adding that they ultimately hurt US firms and consumers and should be revoked.

"China is willing to address differences with the US through dialogue based on mutual respect, but it would take necessary measures to defend its interests if Washington persists with actions it views as damaging," she added.

Chen Jianwei, a researcher at the University of International Business and Economics' Academy of China Open Economy Studies in Beijing, said while the US tariff plan signals growing policy uncertainty, both sides still have time and room to manage disputes through dialogue, given the high level of interdependence in the semiconductor supply chain.

Negotiations remain the most practical way to address complex trade frictions, allowing both sides to design phased, workable arrangements that help stabilize expectations, he said.

In response to a media query regarding reports that TikTok, a Chinese social media platform, has signed agreements with three investors to establish a new joint venture in the US to ensure its continued operations there, He, from the Ministry of Commerce, said the Chinese government hopes that the relevant parties can reach a solution that complies with Chinese laws and regulations while balancing the interests of all sides.

The Chinese and US economic and trade teams previously reached a preliminary framework for properly addressing issues such as TikTok through cooperation, based on mutual respect and equal consultation, according to the Ministry of Commerce.

The spokeswoman also called on the US to ensure a fair, open, transparent and nondiscriminatory business environment for Chinese companies operating there, stressing this would help support stable and sustainable economic and trade ties between the two countries.

On being asked about reports in the media that China has continued to restrict exports of certain rare earth elements used in magnet production, and whether those controls would be relaxed for shipments to the US, He noted that China remains committed to safeguarding the security and stability of global supply chains and to promoting compliant, orderly trade.

"I am not aware of that information," she said. "Rare earth magnets are generally treated as ordinary import and export goods, and fluctuations in trade data are a normal market phenomenon."