Trump’s Trade Office Launches Investigation Into China Trade

The U.S. Trade Representative’s office has launched a compliance review of the Economic and Trade Agreement with China, potentially reshaping U.S.-China trade relations.

At a Glance

  • U.S. Trade Representative announces compliance review of U.S.-China trade agreement
  • Review aligns with Trump’s “America First Trade Policy” directive
  • China’s non-market practices pose significant challenge to global trade system
  • Biden-Harris Administration implements multi-faceted strategy to address trade issues
  • Findings could impact future U.S.-China trade negotiations and policies

Compliance Review Announced

In a move that could significantly impact U.S.-China trade relations, the Office of the United States Trade Representative has announced a comprehensive compliance review of the Economic and Trade Agreement between the two nations. This review aims to assess whether China is fulfilling its commitments as outlined in the agreement, adhering to the principles set forth in the “America First Trade Policy” Presidential Memorandum signed on January 20, 2025.

“The Office of the US Trade Representative (USTR) is conducting this review to determine if China is acting in accordance with the commitments it made in the agreement,” the USTR stated.

The announcement comes on the heels of the 2024 Report to Congress on China’s WTO Compliance, which paints a concerning picture of China’s role in the global trading system. Ambassador Katherine Tai, in her assessment, did not mince words about the challenges posed by China’s economic approach.

“China continues to represent the biggest challenge to the international trading system. After 23 years of membership in the World Trade Organization, China still embraces a state-directed, non-market approach to the economy and trade, which runs counter to the norms and principles embodied in the WTO,” Ambassador Katherine Tai said.

The report highlights China’s non-market policies and practices, which are viewed as anticompetitive and detrimental to global industries. These findings underscore the importance of the compliance review in addressing long-standing concerns about China’s trade practices.

Implications for U.S.-China Trade Relations

The compliance review could have far-reaching implications for U.S.-China trade relations. While the announcement did not specify whether the review pertains to the phase one trade agreement signed in January 2020, it signals a renewed focus on ensuring China’s adherence to its trade commitments.

Scott Bessent, Trump’s nominee for Treasury secretary, has indicated that the phase one agreement would serve as a starting point for future trade relations with China. Additionally, Jamieson Greer, Trump’s pick for U.S. Trade Representative, brings valuable experience to the table, having been involved in the phase one deal negotiations as USTR Chief of Staff.

You hear that? It’s a starting point.

There’s more to come!