On November 28, the U.S. Commerce Department took action against what it claimed were unfair Chinese trading practices, announcing two investigations into the pricing of aluminum product imports.

Commerce Secretary Wilbur Ross said that the Chinese government has "subsidized excess production of common alloy aluminum sheets," which are used to manufacture such common items as gutters, street signs, and electrical boxes. Chinese aluminum production doubled from 2011 to 2015, saturating the U.S. market with products that sell far below fair value.

Typically the Commerce Department only begins an investigation upon receiving a complaint from a U.S. industry. But in this case, Ross decided to intervene after noticing that Chinese practices seemed to be harming U.S. producers. The Commerce Department has the authority to self-initiate cases, but has generally chosen not to avail itself of this power. The last time it opened an investigation without a complaint was more than 25 years ago.

Ross has also said that he expects U.S. industries to file further complaints about Chinese trade practices, and has encouraged executives to do so. Commerce Department investigations are up 65% overall this year as they pursue Trump's protectionist agenda.

Depending upon the results of the investigation, the Commerce Department could impose duties as restitution for Chinese subsidies and prices that may be 56.54 to 59.72% below fair value. The final outcome may not be announced until late 2018.

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The announcement conflicts somewhat with the picture Trump painted of the success of his visit to China earlier in November, touting "tremendous, incredible, job-producing" deals (though deals may be less lucrative than advertised) and describing President Xi Jinping's lavish welcome.

Trump's rosy outlook after his China visit came as something of a surprise given his aggressive campaign rhetoric, in which he accused China of "raping" the U.S. economy and manipulating currency. The Commerce Department's actions are thus more in keeping with what was expected from the Trump administration.

As for China, it remains to be seen how they will react to the investigations. The Commerce Department's actions are permitted under World Trade Organization rules. But China may dispute any duties imposed, since this will likely entail the U.S. classifying China as a non-market economy, despite Beijing's vehement protestations that the state does not dictate prices. China might consider the investigations to be an escalation of trade tension, and could place trade restrictions on U.S. companies in return.

Other trade issues, including Chinese overcapacity in other industries like steel, and Chinese technology transfer and intellectual property policies, may spur further U.S. crackdowns, leading some to fear that the U.S. and China may be on the path to a full-blown trade war.