US launches investigation into China's compliance with phase one trade deal

In a statement, USTR announced that an investigation has been launched to examine China's practices under the Phase 1 trade agreement.

It was stated that whether China has fully fulfilled its commitments under the agreement, the potential burdens and restrictions on US trade in the event of non-fulfillment of these commitments, and the measures to be taken against this will be examined.

The US and China agreed on a phase one trade deal in December 2019 after months of negotiations.

With the agreement signed in January 2020, China agreed to make structural changes to correct disruptive actions, policies and practices in the areas of intellectual property, technology transfer, agriculture and financial services.

Given the large trade deficit between the US and China, China had committed to purchasing significant additional goods and services from the US.