China says U.S. transshipment report disregards facts
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China's Commerce Ministry on Thursday strongly rejected a U.S. report alleging that Beijing is orchestrating a massive scheme to evade tariffs, calling the findings "irresponsible accusations" that "disregard facts." The U.S. report, released last week, estimates the country loses $19 billion to $26 billion annually in tariff revenue, largely from Chinese goods transshipped through third nations like India, to avoid import duties. Beijing contends that Washington's own "discriminatory" tariffs are the primary disruptor of global supply chains. The ministry urged the U.S. to cease its accusations, warning that such actions threaten bilateral trade stability. This dispute escalates trade tensions as the U.S. prepares to implement new anti-circumvention enforcement tools. The White House report also placed major allies, including the EU and Mexico, in its crosshairs for allegedly enabling this practice.
More context
Timeline
- On 2018: U.S. initiated Section 301 tariffs on Chinese goods.
- · On 2020: U.S.-China Phase One trade deal temporarily eased tensions.
- · On 2021: Biden administration maintained Trump-era tariffs on China.
- · On 2024: U.S. raised tariffs on Chinese EVs and advanced technologies.
- · On Aug 12, 2026: U.S. released transshipment report estimating $26 billion loss.
- · On Aug 14, 2026: U.S. report named 40 economies enabling tariff evasion.
- · On Aug 20, 2026: China's Commerce Ministry formally opposed the report's findings.
- · On Aug 20, 2026: China urged U.S. to stop "irresponsible accusations" immediately.
- · In Sep 2026: U.S. plans to implement AI customs enforcement system.
- · By 2027: Bilateral trade could decline if new tariffs implemented.
- · By 2028: Supply chains may shift further from Chinese markets.
Why it matters
Immediate impact: Heightened trade friction threatens US import prices and relations. Long-term impact: Supply chain realignment may accelerate away from Chinese networks. Affected groups: US manufacturers, consumers, customs officials, and trading partners. Reader priority: Monitor official responses from U.S. Trade Representative and Commerce.
Coverage notes
Left: Frames US report as protectionist; highlights China's call for cooperation. Center: Reports dispute neutrally; presents both countries' claims without taking sides. Right: Emphasizes US effort to combat evasion and China's defensive, dismissive response.
Primary report
China's Commerce Ministry statement opposing US transshipment
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
