Highlights

• China's MOFCOM threatens countermeasures if the U.S. implements Section 301 tariffs on Chinese semiconductors by June 2027, calling the move disruptive to global supply chains and inconsistent with WTO rules.
• Beijing keeps diplomatic channels open while reserving the right to retaliate, signaling companies should reassess semiconductor sourcing and contract strategies ahead of the 2027 deadline.
• MOFCOM indicates any TikTok U.S. joint venture will require Chinese regulatory approval, while downplaying reports of rare earth export restrictions as normal market fluctuations.

---

China’s Ministry of Commerce (MOFCOM) says it will “respond with necessary measures” if the United States proceeds with Section 301 tariffs on Chinese semiconductor products, framing the planned action as unilateral, disruptive to global supply chains, and inconsistent with WTO rules. In plain terms, Beijing is warning Washington not to treat semiconductor trade as a one-way ratchet.

The immediate news hook is timing.

China Daily reports (opens in a new tab)—offering a point of view from state-owned media,  that the Office of the U.S. Trade Representative has set June 23, 2027 as the date when tariffs on Chinese semiconductors would increase, while keeping tariffs at zero during an 18-month transition period, with the final rate to be announced no fewer than 30 days in advance. MOFCOM’s spokeswoman said China has already lodged “stern representations” through the bilateral economic and trade consultation mechanism and formally rejects the conclusions of the Section 301 investigation.

For U.S. business audiences, the nuance is that Beijing is keeping a diplomatic channel open—calling for dialogue “based on mutual respect”—while explicitly reserving the right to retaliate. That combination typically signals contingency-planning time for companies: reassessing semiconductor sourcing, contract terms, and inventory strategies well ahead of 2027, particularly if tariff levels escalate.

A second notable thread involves TikTok.

Asked about reports that TikTok has signed agreements with three investors to establish a new U.S. joint venture, MOFCOM said it hopes all parties can reach a solution that complies with Chinese laws and regulations while balancing interests. Translation: even if a U.S. structure is negotiated, Chinese regulatory approval remains a gating factor.

Finally, on rare earths

Always a sensitive market issue—MOFCOM played down reports of ongoing export restrictions on rare earth elements used in magnet production. The spokeswoman said she was “not aware” of such claims, adding that rare earth magnets are generally treated as ordinary import-export goods and that fluctuations in trade data are a normal market phenomenon.

For Western observers

This is not an affirmative assurance so much as a carefully calibrated, non-committal response that preserves policy flexibility.

Disclaimer: This item is based on reporting from China Daily, a media outlet affiliated with a state-owned entity. Statements and interpretations should be independently verified where possible.

©!-- /wp:paragraph -->