U.S. Takes On China: New Phase One Trade Deal Investigation

The U.S. Trade Representative has initiated a new investigation under Section 301 into China's alleged non-compliance with the Phase One trade deal, signed by Trump in 2020. Amid ongoing economic tensions, the probe focuses on China's shortfalls concerning purchasing targets and policy changes related to intellectual property and technology.

The United States Trade Representative has launched a fresh investigation targeting China's alleged failure to uphold the Phase One trade agreement made with Donald Trump in 2020. This new inquiry, conducted under Section 301 of the Trade Act of 1974, puts further pressure on U.S.-China trade relations as the U.S. evaluates escalating tariffs on Chinese imports.

Despite the U.S. move, China firmly countered Washington's claims, stating that it has adhered to the deal's obligations. A spokesperson from the Chinese embassy accused the U.S. of unfairly heightening economic tensions. Meanwhile, the Phase One agreement aimed to improve trade balance by boosting China's purchases of U.S. goods by $200 billion annually, a target missed partly due to the pandemic.

The ongoing investigation will primarily address whether China has fulfilled commitments on intellectual property, technology transfer, and other sectors. Public comments will be collected until December with a hearing set for December 16, highlighting the Trump Administration's efforts to enforce the deal and support American economic interests.