WASHINGTON — Today, United States Trade Representative 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 (“Phase One Agreement”). USTR will examine whether China has fully implemented its commitments under the Phase One Agreement, the burden or restriction on U.S. commerce resulting from any non-implementation by China of its commitments, and what action, if any, should be taken in response.
“President Trump made history in his first term when he stood up for the American worker and brokered the Phase One Agreement, establishing a more fair and reciprocal trade relationship with China,” said Ambassador Greer. “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.”
As explained in a formal notice, USTR is inviting public comments and will hold a hearing in connection with this investigation.
Background
On December 13, 2019, following months of negotiations, the United States and China reached the historic and enforceable Phase One Agreement. Under the Phase One Agreement, China agreed to make structural changes to correct distortive acts, policies, and practices in the areas of intellectual property (IP), technology transfer, agriculture, and financial services, and included certain issues covered in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. Given the persistent and large bilateral U.S. trade deficit with China, the Phase One Agreement committed China to make substantial additional purchases of U.S. goods and services.
Five years following entry into force, despite repeated U.S. engagement with China to address implementation concerns, China appears not to have lived up to its commitments under the Phase One Agreement with respect to non-tariff barriers, market access issues, and purchases of U.S. goods and services.
Section 302(b) of the Trade Act of 1974, as amended (Trade Act), authorizes the Trade Representative to initiate an investigation to determine whether conduct is actionable under Section 301 of the Trade Act. Actionable conduct under Section 301(a) includes, inter alia, that the rights of the United States under any trade agreement are being denied or that an act, policy, or practice of a foreign country violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement.
To be assured of consideration, interested persons should submit written comments, requests to appear at the hearing, and a summary of the testimony, by December 1, 2025. USTR will hold a hearing in connection with this investigation on December 16, 2025.
A copy of the Federal Register Notice on the initiation of the investigation is available here.
A docket for comments regarding the investigation will be available here.
A docket for requests to appear at the public hearing to be held in connection with this investigation will open on October 31 and be available here.
###
First Appeared on
Source link
