US and China enter new phase of legal arms race in trade war

The United States and China are intensifying a legal arms race with competing sanctions and regulations that trap global firms in conflicting compliance demands. This development comes amid US President Donald Trump’s visit to China and ongoing disruptions from the US-Iran war.

Washington and Beijing have rolled out rival legal and regulatory regimes in recent months. These measures aim to secure strategic advantages in trade, technology and security disputes.

Global companies from South Korea to the Netherlands now face an impossible position. They cannot meet one side’s rules without breaking the other’s, analysts said.

US authorities recently imposed sanctions on several Chinese entities over Iran trade links. This includes five oil refiners that Beijing had tried to protect the previous week. The actions add further strain to bilateral ties already pressured by energy supply disruptions.

Related Articles

China's Ministry of Commerce announced two trade barrier investigations into US practices on Friday, described as reciprocal countermeasures to Washington's two Section 301 probes against China. The probes target US measures disrupting global supply chains and green product trade, potentially breaching WTO rules and bilateral agreements. They are set to conclude within six months, with a possible three-month extension.

Reported by AI

The presidents of the United States and China began talks in Beijing focused on bilateral relations and international conflicts. The meeting takes place on May 14 and 15.

China warned Mexico on March 26, 2026, of potential trade reprisals following tariffs imposed in December 2025 on over 1,400 categories of Asian goods, primarily Chinese. The move risks complicating Mexico's USMCA renewal talks with the US. Economy Secretary Marcelo Ebrard dismissed Beijing's complaints, accusing Chinese firms of state-backed dumping.

Reported by AI

Beijing renewed import licences for hundreds of US beef plants during US President Donald Trump’s visit to meet Chinese leader Xi Jinping. Brazil nears its annual beef export quota to China and is seeking alternative markets.

This website uses cookies

We use cookies for analytics to improve our site. Read our privacy policy for more information.
Decline