US probes China's alleged violation of Phase One Trade Agreement

By Al Mayadeen English
Source: News Websites
24 Oct 2025 21:31

The US has launched a Section 301 investigation into China’s alleged non-compliance with the 2020 Phase One Trade Agreement, the USTR announced.

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A flag of the United States flies next to a flag of China in Chinatown in San Francisco, Friday, April 18, 2025. (AP)

The United States Trade Representative (USTR) has launched a formal investigation into China’s alleged non-compliance with the 2020 Phase One Trade Agreement, according to a statement released on Friday.

Signed in January 2020, the Phase One Agreement aimed to de-escalate the US–China trade war. China committed to increasing purchases of US goods and services by $200 billion over two years, along with reforms in intellectual property protection, technology transfer, and financial services.

The move signals renewed scrutiny of trade commitments made under the Trump administration, particularly as tensions persist over tariffs and bilateral commerce.

"Today, USTR Jamieson Greer announced the initiation of a Section 301 investigation of China’s implementation of the Economic and Trade Agreement Between the Government of the United States of America and the Government of the People’s Republic of China," the statement read.

The Section 301 investigation will evaluate whether China has fulfilled its obligations under the agreement, as well as the burden or restrictions its alleged non-compliance may place on US commerce.

The probe could result in new trade measures or penalties, depending on the findings of the USTR.

Trump–Xi meeting expected to address trade

The announcement comes just days before President Donald Trump is expected to meet with Chinese President Xi Jinping during his Asia visit. The two leaders are likely to address unresolved trade issues, including the ongoing tariff standoff and enforcement of prior commitments.

China-US relations took a step toward stability following a phone conversation between President Xi and Trump, which Chinese media described as positive and constructive.

According to China Central Television (CCTV), Xi highlighted the importance of remembering shared history, stating, “The Chinese people will not forget the valuable assistance provided by the United States and other countries of the anti-fascist coalition during the war of resistance against Japan. We must honor the fallen heroes and value peace and build a future based on historical memory.”

“Chinese-American relations are extremely important. China and the United States can contribute to each other’s success, strive for joint prosperity and mutual benefit, and benefit the whole world,” Xi added.

Following the call, Trump described the conversation with Xi as “very productive,” noting progress on several critical issues, including China-US trade, fentanyl, the TikTok deal, and the war in Ukraine.