China’s 2020 trade deal under scrutiny: Trump administration launches compliance probe; Beijing agreed to buy more US products, services
Under the deal, China had pledged to increase buys of US products and services by hundreds of billions of dollars over 2020 and 2021.
However, the targets were not met, largely due to the Covid-19 pandemic.The probe was prompted by what the US Trade Representative’s office called China’s “apparent failure to comply with the January 15, 2020” agreement.
Washington could take further action depending on the findings.
This comes days before US President Donald Trump is scheduled to meet Chinese President Xi Jinping.The move “underscores the Trump administration’s resolve to hold China to its Phase One Agreement commitments,” said US trade representative Jamieson Greer, as quoted by AFP.The investigation could heighten tensions between the two economies, which have already experienced a turbulent trade relationship during Trump’s second presidency.
Since returning to the White House, Trump has imposed sweeping duties on US trading partners, and Washington and Beijing have engaged in tit-for-tat retaliation.
At one point, tariffs on both sides reached triple digits, disrupting supply chains.
While tensions have eased somewhat, the trade truce remains fragile.Among the commitments, China had promised to boost buys of US agricultural goods.
But renewed tensions this year led Beijing to raise tariffs on US agricultural products, including soybeans, affecting a key support base for Trump.
Chinese buyers also halted new soybean orders from the US autumn harvest, hitting the sector hard.On Friday, Greer emphasised the US commitment to protecting domestic interests.
“Five years following entry into force, China’s lack of compliance with the Phase One Agreement appears to have undermined the conditions of competition for US companies seeking to trade with and operate in China,” said the USTR’s office.The USTR is expected to seek public comments as part of the next steps in the investigation, which could shape Washington’s response to China’s trade practices.
