File photo shows national flags representing the United States, Canada, and Mexico Photo: VCG

US Trade Representative Jamieson Greer reportedly used China as pretext for US' declining to extend the US-Mexico-Canada Agreement (USMCA) in an interview on Wednesday. Chinese analysts slammed the remarks, saying US' attempt to dictate who its trading partners should trade with highlights its hegemonic mindset, while warning that politicizing trade and investment will create uncertainty that will undermine North American competitiveness.

The US didn't agree to renew the USMCA in its current form, Greer claimed after a trilateral virtual meeting on Wednesday, Reuters reported. The move keeps the agreement in place for another 10 years with annual reviews before it expires, unless the three countries agree to renew it with changes. 

While an official statement posted on the USTR website made no explicit mention of China, Greer cited China as a pretext in a subsequent Bloomberg interview, linking USMCA renewal to what he described as inconsistent signals from Ottawa. 

"On one day they say, 'We want to help America re-industrialize, we want to help Make America Great Again,' and the next day they talk about bringing in Chinese investment," Greer said. The US side also raised so-called concerns over transshipments of Chinese inputs from its neighbors and wanted to tighten the rules of origin on autos, according to Bloomberg.

At a meeting with Mexico scheduled in late July, the US will focus on beefing up rules of origin for autos and other industrial goods and economic security to keep other countries, including China, from benefiting from USMCA access, Reuters reported, citing a US government official.

Chinese analysts rejected Greer's characterization, arguing that Washington is groundlessly scapegoating China for internal disagreements over a regional trade pact and said such politically charged rhetoric exposed US' hegemonic attempts to politicize trade and investment, while such pushes will be running against economic realities.

Groundless claims

In response to an inquiry over Greer's claim that both Canada and Mexico have to tighten their rules of origin, and Canada should not become a "backdoor" for other countries to come inside, with a specific mentioning that it contains the subsidized autos coming from China, Chinese Ambassador to Canada Wang Di said in an interview with Reuters that cooperation between China and Canada is only between China and Canada, while the cooperation between Canada and other countries is up to Canada and the other countries.

China believes that cooperation between any two countries should not affect or constrain the cooperation between one country and other countries, according to an interview script posted on the embassy's website on Wednesday.

A spokesperson for the Chinese Embassy in the US declined to comment when contacted by the Global Times on Thursday. 

"Forcing a link between USMCA renewal and normal Chinese economic cooperation with Canada and Mexico is baseless and labeling legitimate commercial ties as 'backdoor' disregards Canada's right to make its own foreign and economic policy," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday.

The expert noted that the US appears intent on leveraging the annual review to maximize its bargaining power, demanding concessions from its partners rather than seeking mutually beneficial adjustments.

"The US wants a yearly review - not a multi‑year cycle - so it can constantly pressure others to reshape their policies to favor American interests," Zhou said. "This is not constructive change; it forces partners to sacrifice their own gains for US advantages. Such an approach undermines long‑term business confidence and creates instability in supply chains in the North American market."

Politicizing trade

According to Reuters, the US' decision was widely expected as the country is unhappy with persistent and growing US goods trade deficits with Mexico and Canada that reached $197 billion ‌and $48.3 billion in ⁠2025, respectively.

US President Donald Trump has repeatedly said the US would do better without USMCA despite launching it in 2020 as "the best agreement we've ever made."

Possibly one of the most important free trade agreements for the US, the prospect of annual review negotiations has already prompted several US business associations to call for more certainty and ensuring integrity.

The Retail Industry Leaders Association, whose members include Home Depot Inc and Target Corp, urged the parties to preserve the duty-free benefits of the deal and reduce uncertainty surrounding the review period as much as possible, according to Bloomberg.

National Foreign Trade Council (NFTC) said in a Wednesday statement that the integrated North American marketplace created by USMCA is the bedrock of US' competitiveness, delivering affordable domestic manufacturing and enabling American firms to compete and win in global markets. 

The NFTC urges all three governments to work trilaterally to address the remaining barriers and prioritize renewal of the agreement to restore the stability, predictability, and rules-based framework that the USMCA provides to US businesses, workers, and consumers, per the statement.

Ma Wei, a researcher with the Chinese Academy of Social Sciences, told the Global Times on Thursday that the focus of contention concerning the USMCA is whether the North American supply chain should maintain a regionalized layout among the US, Canada, and Mexico, or be further concentrated within the US itself. 

The current US administration clearly favors the latter, aiming not only to keep supply chains in North America but also to reshore them to the US at the expense of significant interests from Mexico and Canada, Ma said.

The US' effort to deliberately exclude Chinese elements from the North American supply chain would be impractical to implement given the complexity of cross-border supply chain, and would hit Mexico especially hard with such moves putting large volumes of investment and local jobs at risk, piling immense pressure on the Mexican side.

While the agreement remains in force for now, the annual review could become a recurring point of friction - especially with Washington continuing to tie economic issues to geopolitical narratives about China, Chinese analysts noted.

Zhou noted that business decisions are primarily driven by enterprises based on cost, quality, and efficiency, not government dictates. "The US is overreaching by trying to dictate what Canadian companies buy or invest in, and if American products cannot compete, blocking Canadian purchases from China defies basic market logic and harms the normal functioning of international commerce," Zhou said. 

Canada's trade with China, Zhou argued, is beyond reproach, as it reflects complementary strengths and mutual benefit, and is entirely independent of US corporate or governmental interests. 

"Given China's status as the top supplier of parts, components and intermediate inputs, as well as the deep industrial integration formed over decades, efforts to exclude Chinese inputs are neither realistic nor economically viable," Zhou noted. "Such efforts will undermine the competitiveness of North American manufacturers."

Li Haidong, a professor at China Foreign Affairs University, told the Global Times on Thursday that cooperation between China and other nations is based on shared interests and does not undermine other's development, in fact, it helps them achieve their own goals more efficiently. 

Strengthening economic, trade, and other ties with China is necessary for Canada to safeguard its own security, sovereignty, and development interests, Li said.

The Chinese government has consistently maintained that trade should not be politicized and reaffirmed its commitment to open, non‑politicized trade relations, urging all parties to respect market principles and sovereign choices.

Chinese Foreign Ministry spokespersons have also stated in February that China and Canada have established a new strategic partnership. This reflects the spirit of equality, openness and inclusiveness, peaceful cooperation, and shared benefit. It does not target any third party, serves the common interests of the people of both countries, and is conducive to world peace, stability, development and prosperity.