US Begins Investigation Into China's Compliance With Phase One Trade Agreement

The USTR said the investigation under section 301 of the Trade Act of 1974 will assess "whether the rights of the United States under the Phase One Agreement are being denied or an act, policy, or practice of China violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States" under the agreement.

The public notice of the investigation requests public comments from 31 October through 1 December 2025. The USTR will hold a public hearing on the matter on 16 December 2025.

China and the United States agreed to the Phase One economic and trade agreement in 2020 after months of negotiations. In the deal, China agreed to buy more than USD 200 billion of US goods and services over 2 years and make reforms to its intellectual property and technology transfer policies. It also increased access to China's financial services and agricultural markets.

"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," USTR Jamieson Greer said in a statement.

China, through Spokesperson of its Embassy in the United States Liu Pengyu, responded that it has "scrupulously fulfilled" its obligations under the agreement.

Treasury Secretary Scott Bessent said on 26 October 2025 that the United States and China agreed on a preliminary framework for a trade deal ahead of a planned meeting between President Donald Trump and Chinese President Xi Jinping (seeUS-China Deal Framework Sets Stage for 'Productive' Trump–Xi Talks, Treasury Secretary Bessent Says (27 October 2025)).

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