The United States Trade Representative (USTR), led by Jamieson Greer, has launched a Section 301 investigation into China’s adherence to the Phase One Trade Agreement. This investigation aims to assess whether China has fulfilled its commitments under the agreement, which was designed to enhance trade relations between the U.S. and China.
Investigation Announcement
The announcement was made recently, highlighting the USTR’s role in navigating trade issues with China. Ambassador Greer emphasized the historical significance of the Phase One Agreement, brokered during President Trump’s first term. He noted that this action illustrates the administration’s commitment to ensuring fair trade and protecting American interests.
Purpose of the Probe
- Examine China’s implementation of the Phase One Agreement.
- Evaluate the impact of China’s non-compliance on U.S. commerce.
- Determine necessary actions in response to any violations.
Background of the Phase One Agreement
On December 13, 2019, the U.S. and China finalized the Phase One Agreement after extensive negotiations. Key commitments included:
- Structural reforms in intellectual property protection.
- Changes in technology transfer policies.
- Increased purchases of U.S. goods and services.
Despite these commitments, reports indicate that China has not fully lived up to its obligations over the past five years, particularly regarding non-tariff barriers and market access.
Legal Framework
The authority for this investigation comes from Section 302(b) of the Trade Act of 1974. It allows the Trade Representative to investigate if a foreign country’s actions violate trade agreements with the U.S. Notably, U.S. interests must not be diminished or denied under any agreement.
Next Steps and Public Involvement
The USTR has invited public comments and will conduct a hearing as part of this investigation. Interested parties must submit their input by December 1, 2025. The hearing is scheduled for December 16, 2025, allowing stakeholders to present their views directly related to the investigation.
This is a pivotal moment in U.S.-China trade relations, with ongoing scrutiny over the Phase One Agreement’s implementation likely to shape future discussions and policy decisions.
