This past week, CTM covered the following issues.

In a major development related to the Trump administration's tariff strategy, last Friday the Supreme Court held that the International Emergency Economic Powers Act (IEEPA), under which the Trump administration had justified many of its tariffs on China and other countries, does not allow the president to impose tariffs. However, replacement tariffs have already been announced and more are coming soon.

China's Ministry of Commerce (MOFCOM) said it is still weighing the implications of the U.S. Supreme Court decision, while closely monitoring new tariff developments.

In the latest escalation of trade tensions between Beijing and Tokyo, MOFCOM sanctioned 40 Japanese firms across the aerospace, defense, and heavy industrial sectors under its export control laws, enforcing stricter licensing requirements or outright bans.

Taiwan tightened its export controls on high‑tech and military‑related goods in a move to align its rules with international regimes, according to the government.

In the U.S., the Trump administration issued long-awaited interim rules to block Chinese companies from accessing billions of dollars in U.S. clean energy tax credits, as part of the implementation of President Trump's One Big Beautiful Bill Act.

The U.S. International Trade Commission announced two new investigations related to China, one on revoking Permanent Normal Trade Relations (PNTR) and the other on government support for the biotech sector.

Texas Attorney General Ken Paxton has filed multiple lawsuits in state court against Chinese companies, with the first one against China-owned company TP-Link, accusing it of deceptive practices in terms of its representation of itself as a company producing in Vietnam; the second one against Anzu Robotics, LLC ("Anzu") for "misleading Texas consumers about the origin, data practices, and security risks of its drones, which are rebranded products of Chinese drone manufacturer DJI and tied to the Chinese Communist Party ('CCP')"; and the third one against Lorex Technology Inc. and Lorex Corporation (collectively "Lorex") "for selling cameras manufactured, sourced, and serviced by Dahua, a military company associated with the Chinese Communist Party ('CCP')."

At a meeting of the European Parliament's International Trade Committee, European Commission officials explained to Members of Parliament the basis for the Commission's price undertakings with Chinese EV maker Volkswagen (Anhui) Automotive Company Ltd.

German Chancellor Friedrich Merz just a two-day state visit to China, with both sides vowing to deepen economic ties while airing sharp differences over trade imbalances, security concerns and fair competition.

At a meeting of the WTO's Dispute Settlement Body, a panel was established to hear China's complaint against Indian subsidies in the battery and auto sectors.

After appealing the panel report in the dispute over its Renewable Energy Tax Credits, the U.S. used a WTO meeting to complain about the ineffectiveness of WTO rules for disciplining China's non-market practices.