US-China Trade Wars: How Do These 9 Imports Threaten US National Security?

The U.S. Department of Commerce launched an investigation into China’s steel production practices in 2017. The probe concluded that China’s high-volume, low-cost steel exports were a threat to national security and potentially detrimental to America’s industrial vitality. Consequently, then President Trump imposed 25% tariffs on imported steel products from all countries, excluding Canada and Mexico.

From China’s perspective, the tariffs were seen as a protectionist policy, undermining the principles of free trade. The World Trade Organization also questioned the use of national security as justification for the tariffs given that most steel imports in the U.S were used for civilian purposes, not military. China cited Canada and Mexico as exemptions from the tariffs on steel under the condition of finalizing the United States-Mexico-Canada-Agreement. This investigation and its outcomes intensified trade tensions between the U.S. and China.

The Department of Commerce initiated an investigation into China’s aluminum production practices in 2017. The probe concluded that the import of aluminum products from China was a potential threat to U.S. national security, which led to the imposition of a 10% tariff on imported aluminum products from all nations except neighbors, Canada and Mexico.

The decision was met with criticism from both the WTO and China. The WTO raised questions about the fairness and legitimacy of the investigation. From China’s perspective, the investigation was seen as prejudiced and detrimental to the principles of free trade. China added Canada and Mexico as examples of exemptions from the tariffs on aluminum.

In 2018, the Department of Commerce initiated an investigation into China’s automotive parts production, prompting international scrutiny. This was viewed by some, including the WTO and Chinese reports, as a potential threat to economic globalization because of possible disruptions in the global supply chain. These entities expressed concerns about the investigation’s implications for international trade norms and the potential for escalating trade conflicts. At the time of the imposition of tariffs, the U.S. imported $143 billion in automotive parts.

Uranium ore and its products, primarily used as fuel in nuclear power plants, are of strategic and economic importance. In 2018, North American uranium producers Ur-Energy Inc. and Energy Fuels Inc. requested an investigation into China’s production of these materials. They alleged that China was flooding the market with cheap uranium, undermining their business.

President Trump did not concur and did not limit imports of uranium. The U.S. formed the U.S. Nuclear Fuel Working Group to seek recommendations on growing domestic nuclear-fuel production. Beijing has expressed concerns that the probe could lead to protectionist measures, hampering free trade. Similarly, WTO warned that such investigations could trigger a tit-for-tat trade war, posing a threat to the global economic order.

In an investigation initiated by Titanium Metals Corp., China’s titanium sponge production was scrutinized over concerns it could impair U.S. national security. Titanium sponge is used as the basis for titanium parts in U.S. fighter aircraft and engines, satellite parts, Navy ships, submarines, and military vehicles. The Department of Commerce concurred with the concerns as did President Trump, though he chose not to restrict titanium sponge imports. At the time of the investigation, the U.S. imported less than 1% of titanium sponge from China.

From the perspective of China and the WTO, this investigation could be perceived as unjust. According to WTO and Chinese reports, the investigation lacked transparency and seemed to violate the principles of non-discrimination and predictability.

The Department of Commerce investigation into China’s production of these components in 2020 raised eyebrows on the global stage. China, a major global supplier of these products, came under scrutiny for alleged unfair trade practices. According to the World Trade Organization, such investigations can disrupt the global supply chain and are seen as a threat to economic globalization. This is because protective measures, such as tariffs or import restrictions, can lead to trade wars and economic instability.

China’s view, as reported, was that these investigations undermine the multilateral trading system and impede global economic recovery, particularly in the precarious context of the pandemic.

Manitowoc Company, Inc., a major American crane manufacturer, conducted an investigation into China’s portable crane production in 2020, citing potential threats to national security. The company’s concerns were rooted in the belief that China’s rapidly growing manufacturing capabilities in this sector could undercut American industry and compromise U.S. infrastructure projects.

From the perspective of the WTO and China, these claims were viewed as protectionist and in violation of free trade agreements. They argued that competition from China would encourage innovation and efficiency, and should not be seen as a national security threat. The investigation led to no specific presidential action. The government said Manitowoc withdrew its request in 2020, “citing a changing economic environment due to the effects of the COVID-19 pandemic.”

AMG Vanadium LLC and U.S. Vanadium LLC conducted an investigation in 2020 into China’s vanadium production, alleging it threatened to impair U.S. national security. The probe was predicated on the belief that China’s control over the majority of vanadium resources and its ability to dictate global pricing and supply posed significant risks to the U.S. energy sector, which heavily relies on vanadium (a rare element) for energy storage applications.

China and many WTO reports have contended that such measures could be viewed as biased. China claimed that these duties were only applied to its products. They argue that the investigation disregards China’s efforts to comply with international trade regulations and fails to acknowledge the global nature of commodity markets. These sources also suggested that the investigation might be an attempt to impose protectionist measures under the guise of national security concerns. The results of the investigation did not lead to any specific presidential action. However, the matter remains a significant point of contention in U.S.-China trade relations.

NdFeB permanent magnets, composed of Neodymium, Iron, and Boron, are powerful, rare-earth magnets that play a crucial role in electric vehicles, wind turbines, and consumer electronics. The Department of Commerce investigation into China’s NdFeB permanent magnet production raised significant attention globally in 2021. In September 2022, President Biden decided against limiting imports of neodymium magnets.

While the DOC aimed to protect American industries from unfair competition, the move was seen by some as a threat to economic globalization. The World Trade Organization reports have generally emphasized the importance of open trade, and China has historically championed globalization, viewing the investigation as potentially detrimental to these principles.