Concerns raised over US 301 investigation hearing, US agricultural groups call on government to 'remain cautious'

After the US government launched a 301 investigation against 16 economies including China, the European Union, Japan, and South Korea in March, the Office of the US Trade Representative launched a four-day hearing on the investigation on the 5th of this month.

According to media reports such as Hong Kong's South China Morning Post and Reuters, the hearing will hear testimony from nearly 150 representatives from businesses, trade groups, foreign governments, and think tanks. On the 5th, Zang Qingzi, a representative of the China International Chamber of Commerce, demanded at the meeting that the US terminate the relevant investigation. She said, "The investigation lacks sufficient legal basis and evidence support, and bypasses multiple established multilateral mechanisms." Zang Qingzi emphasized that the so-called "overcapacity" is essentially an economic state, not a government action, and the US should accurately identify specific government actions, rather than just pointing to the overall economic results.

South Korea also calls on the US to terminate the investigation. The investigation into overcapacity in South Korea is neither appropriate nor necessary, "said Lee Seung hun, Commercial Counsellor of the South Korean Embassy in the United States

At the same time, there are clear differences between the US industry and agricultural groups on the issue of this survey. The American Iron and Steel Manufacturers Association and other groups are urging the government to impose tariffs to curb import shocks from China and other countries. Agricultural and retail industry groups in the United States are calling on the government to remain cautious. The American Soybean Association, representing over 500000 soybean farmers, stated in testimony that the US and China had previously suffered retaliatory tariffs on US soybeans due to trade frictions. The vice chairman of the association, Iowa soybean farmer Walton, is concerned that the newly added 301 investigation may lead to the government issuing trade remedy measures, hindering the progress of US China negotiations. The American Footwear Distributors and Retailers Association also stated that footwear imports are already facing an average tariff of 12% and should not be further burdened by additional tariffs.

On February 20th of this year, the US Supreme Court ruled that the US government's tariff policies were illegal. On March 11th, the US government launched a 301 investigation into 16 economies including China, Japan, and South Korea, citing "overcapacity", in an attempt to impose new tariffs.