US to Probe China’s Compliance with 2020 Trade Deal
The United States is preparing to launch an investigation into China’s compliance with the Phase One trade agreement signed in 2020, according to a New York Times report. The probe, which could be announced as early as Friday, may lead to new tariffs ahead of a critical meeting between the leaders of both nations.
Key Details of the Investigation
The investigation will be conducted under Section 301 of the Trade Act of 1974. This comes during a period of heightened trade tensions between the world’s two largest economies.
Trade relations have deteriorated significantly in recent weeks after months of relative stability. The tensions escalated when former President Donald Trump imposed 100% additional duties on Chinese goods, scheduled to take effect on November 1.
China responded by announcing export controls on nearly all rare earth elements, critical components in electronics and defense technologies.
Upcoming Diplomatic Meeting
The timing of the probe is particularly significant as it precedes a scheduled meeting next week between former President Trump and Chinese President Xi Jinping. The outcome of this investigation could substantially impact the discussions between the two leaders.
