Fri Oct 24 22:51:17 UTC 2025: Summary:
The U.S. has launched an investigation into China’s compliance with the 2020 “Phase One” trade deal, alleging violations related to agricultural purchases, intellectual property protection, and forced technology transfers. This investigation, announced by U.S. Trade Representative Jamieson Greer, could lead to further tariffs on China amid escalating trade tensions. China denies the allegations. Experts suggest the move aims to increase U.S. leverage in trade negotiations, particularly regarding agricultural imports and restrictions on rare earth metals exports.
News Article:
U.S. Launches Investigation into China Trade Deal Compliance, Raising Trade Tension
WASHINGTON – The United States has initiated an investigation into whether China is adhering to the terms of the 2020 “Phase One” trade agreement, escalating trade tensions between the world’s two largest economies. U.S. Trade Representative Jamieson Greer announced the probe Friday, citing concerns over China’s fulfillment of commitments related to agricultural purchases, intellectual property protection, forced technology transfers and financial services.
The investigation, according to experts, may provide the Trump Administration with greater leverage to impose further tariffs on Chinese goods, a tactic frequently employed during Trump’s second term. This move comes as President Trump prepares to meet with Chinese President Xi Jinping.
“The administration seems to be looking for new sources of leverage to use against Beijing, while adding another pressure point to get China to buy more US soybeans as well as other goods,” said Wendy Cutler, former US trade negotiator.
China has denied any wrongdoing, with a spokesperson for the Chinese embassy stating in a social media post, “China has scrupulously fulfilled its obligations in the Phase One Economic and Trade Agreement.”
The investigation follows a month in September, which marked the first month since 2018 that China imported no soya beans from US farmers.
The “Phase One” deal, signed in 2020, required China to increase purchases of U.S. agricultural and manufacturing goods. The U.S. Trade Representative’s office alleges that China has failed to meet these commitments.
“The initiation of this investigation underscores the Trump Administration’s resolve to hold China to its Phase One Agreement commitments, protect American farmers, ranchers, workers, and innovators, and establish a more reciprocal trade relationship with China for the benefit of the American people,” Greer said in a statement.
A new round of trade talks between the U.S. and China is scheduled to take place, with discussions expected to focus on China’s restrictions on the export of rare earth metals, critical components for many U.S. tech products.
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