China’s Commerce Ministry said on Monday (July 27, 2026) that new U.S. tariffs imposed ​on Chinese goods over alleged forced labour were unjustified and amounted ‌to protectionism, and urged Washington to remove them.

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On Friday (July 24, 2026), ​the United States imposed new tariffs of 10% ⁠and 12.5% on goods from 60 trading partners, including the EU and China, alleging those countries failed to curb imports made by forced labour. ‌China was assigned a 12.5% rate.

The new U.S. duties could risk undermining a fragile trade truce reached ‌between the world’s two largest economies last year and ‌came ⁠as the two sides prepare for a possible ⁠visit to the U.S. by Chinese President Xi Jinping in September.

The Commerce Ministry, in a statement, accused Washington of long manipulating the issue of forced ​labour, calling the new tariffs ‌a typical act of unilateralism and protectionism, but also signalled willingness to continue dialogue “based on mutual respect, equality and mutual benefit” to address concerns.

“This time, it [Washington] has again initiated ‌a Section 301 investigation and imposed unilateral tariffs on ​the grounds of ‘forced labour,’ which is a typical act of unilateralism and protectionism, and China firmly opposes ⁠it,” the ministry said.

“China has consistently opposed forced labour and has established a comprehensive system of labour laws and regulations to resolutely ‌prevent and combat forced labour practices. In contrast, the U.S. has not only failed to ratify the 1930 Forced Labour Convention, but has also long manipulated the issue of “forced labour””.

It said Washington had pledged during trade talks that replacement tariffs on Chinese goods would not exceed 20%, noting that the new ‌12.5% tariff imposed under the forced-labour probe remained within that limit.

“China urges ​the U.S. to correct its erroneous practices and completely remove the relevant unilateral tariff measures,” the Ministry ⁠said.

It said it reserved the right to take all necessary measures as ⁠it assessed further U.S. actions.

“It’s hoped the U.S. will work with China in the same direction to ‌implement consensus reached in bilateral trade talks, narrow differences, continuously reduce the problem list and lengthen the cooperation list,” ​the Ministry said.

China and the ASEAN bloc of Southeast Asian nations signed an upgrade to their free trade agreement on Tuesday (October 28, 2025), with leaders hailing the deal which spans the digital and green economy, and other new industries.

The 11-member Association of Southeast Asian Nations is China’s largest trading partner, with bilateral trade totalling $771 billion last year, according to ASEAN statistics.

China is seeking to intensify its engagement with ASEAN, a region with a collective gross domestic product of $3.8 trillion, to counter hefty import tariffs imposed by U.S. President Donald Trump’s administration on countries around the world. “We must accelerate trade and investment liberalisation and facilitation and strengthen industrial integration and interdependence,” Chinese Premier Li Qiang said at the ASEAN leaders’ meeting on Tuesday.

Beijing has been seeking to position itself as a more open economy, despite criticism from other major powers of its expanding export restrictions on rare earths and other critical minerals.

The so-called 3.0 version of the free trade agreement between ASEAN and China was signed into effect at a summit of the bloc’s leaders in Malaysia, which Trump attended on Sunday at the start of a trip through Asia. Negotiations on the upgraded ASEAN-China deal began in November 2022 and concluded in May this year, just after Trump’s tariff offensive kicked into gear. The first FTA came into force in 2010.

“The upgrade will further reduce trade barriers, strengthen supply chain connectivity, and unlock opportunities in future growth areas,” Singapore’s Prime Minister Lawrence Wong said.

China has previously said the agreement would pave the way for improved market access in sectors such as agriculture, the digital economy and pharmaceuticals between China and ASEAN. Both China and ASEAN are part of the Regional Comprehensive Economic Partnership, the world’s largest trading bloc, which covers nearly a third of the global population and about 30% of global gross domestic product. Malaysia hosted an RCEP summit in Kuala Lumpur on Monday, the first in five years. The bloc is seen by some analysts as a potential buffer against tariffs imposed by the United States, though its provisions are considered weaker than some other regional trade deals due to competing interests among its members.

Flashpoint waterway

Standing in the way of China taking a leading role in regional trade cooperation are heightened concerns around Beijing’s military ambitions. On Monday, Philippine President Ferdinand Marcos Jr criticised Chinese aggression in the South China Sea, where the two countries have been engaged in a series of confrontations.

Malaysia handed over the chairmanship of ASEAN to the Philippines on Tuesday, with territorial disputes in the South China Sea set to dominate its agenda when Manila takes charge in 2026. Prime Minister Anwar Ibrahimsymbolically passed the gavel to Filipino President Ferdinand Marcos at the close of the summit.