China has initiated two probes into U.S. trade investigations targeting its exports, escalating trade tensions days before President Donald Trump’s visit to Beijing. The Ministry of Commerce stated the actions aim to “safeguard legitimate rights” against U.S. “section 301” probes, which Washington claims violate WTO rules. This retaliation follows accusations that China detained Panama-flagged ships at its ports, a move linked to disputes over assets tied to CK Hutchison Holdings, a Hong Kong shipping giant. The U.S. Federal Maritime Commission warned the detentions could disrupt global shipping, as Panama handles significant U.S. containerized trade.

The escalation mirrors last year’s trade war, where China restricted rare earth supplies to U.S. manufacturers, forcing Trump to negotiate a temporary truce in South Korea. The U.S. initially imposed tariffs of up to 145% on Chinese goods, but Beijing leveraged its dominance in rare earth exports to secure concessions. Trump postponed his April summit with Xi to May 14-15 due to tensions with Iran, though trade disputes remain unresolved. China’s state media has softened political rhetoric against Trump but insists the U.S. investigations are “opportunistic posturing” ahead of the 2022 midterm elections.

Critics argue the U.S. probes into China’s overcapacity and forced labor practices lack transparency. Wang Ziyang, a government-affiliated analyst, called the investigations “arbitrary” and aimed at erecting trade barriers. Meanwhile, Panama appointed U.S. subsidiaries of Maersk and MSC to operate CK Hutchison terminals after a court annulled the Hong Kong firm’s contract—a decision seen as a diplomatic win for Trump. CK Hutchison has filed a $2 billion arbitration claim, straining Sino-U.S. relations further.

While Trump and Xi are set to meet again in May, China’s latest countermeasures signal its resolve to resist U.S. pressure. The commerce ministry declined to comment on the shipping allegations but emphasized that the U.S. actions reveal “its own intent to seize the canal.” The dispute highlights how trade warfare persists despite shifted political priorities, with global markets bracing for continued volatility.