(Yicai) March 27 -- China is prepared to push back hard with “powerful legal tools” after the country launched two investigations into the United States over alleged disruptions to global supply chains and barriers to green trade, a professor of transnational law at Durham University told Yicai.

US probes launched under Section 301 last month not only breach World Trade Organization rules but have also triggered China’s own domestic trade investigation procedures, Du Ming said. China has prepared powerful legal tools to respond, which is an especially significant step given that the appellate body of the WTO dispute settlement mechanism is effectively paralyzed, he added.

China has initiated two reciprocal investigations into US practices, the Ministry of Commerce said on March 27. One focuses on supply chains, including restrictions on Chinese products entering the US market, limits on high-tech exports to China and curbs on two-way investment in key sectors. The other looks at barriers to green trade, such as restrictions on green product exports, delays to new energy projects and limits on related technology cooperation.

Both investigations began on March 27 and must be completed within six months, although they can be extended by up to three more months in special circumstances

China’s move is a response to two Section 301 probes launched by the Office of the US Trade Representative on March 12 and March 13. The first investigation targets 16 economies, including China, on the grounds of “overcapacity” and the second is aimed at 60 economies, including China, on the grounds of “failing to effectively block imports of products made with forced labor.”

China can either take the case to the WTO or respond under its own laws, Du said, adding that the country’s related laws and regulations have been updated. For now, he said, the next steps will depend on two things, one is the findings of China’s investigations and the other is how the US acts going forward.

A WTO panel has already ruled that US Section 301 tariffs on China violate WTO rules, a spokesperson for the Ministry of Commerce said on March 16. The US has once again abused the Section 301 investigation procedure, placing domestic law above international rules, seriously undermining the security and stability of global supply chains and severely disrupting international trade, the spokesperson added.

China “reserves the right to take all necessary measures and resolutely safeguard its legitimate rights and interests,” the ministry said.

Editor: Kim Taylor