USTR to investigate China’s Phase One Agreement implementation

U.S. Trade Representative Jamieson Greer announced the initiation of a Section 301 investigation of China’s implementation of the Economic and Trade Agreement Between the U.S. and the People’s Republic of China, or the “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,” the news release said.

The Phase One Agreement was signed in January 2020 after months of negotiations between the U.S. and China to address USTR’s findings from a 2017 Section 301 investigation to determine “whether the acts, policies and practices of the government of China related to technology transfer, intellectual property (IP) and innovation are unreasonable or discriminatory and burden or restrict U.S. commerce,” the notice explained.

The result was the Phase One Agreement, which suspended additional duties the U.S. had been imposing on China during an escalating trade war in President Donald Trump’s first term.

In exchange, China agreed to “make structural changes to correct distortive acts, policies and practices in the areas of IP, technology transfer, agriculture and financial services” the notice said. China also committed to making “substantial additional purchases of U.S. goods and services” to address the large bilateral trade deficit between the countries.

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Under Section 301 of the Trade Act, USTR can look into whether an act, policy or practice of another country violates the provisions of a trade agreement or denies the U.S. benefits under the trade agreement.

“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,” USTR said.

“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.”

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The U.S. Meat Export Federation reacted positively to the news, thanking USTR for its focus on the issue.

“The U.S. red meat industry, and the beef industry in particular, was a tremendous beneficiary of President Trump’s Phase One Agreement with China, which enabled annual beef exports to China to quickly grow from just $86 million to exceed $2 billion,” USMEF president and chief executive officer Dan Halstrom said in a statement. “Unfortunately, China has walked away from the Phase One and has effectively closed its market to U.S. beef this year. The value derived from China benefits both American producers and consumers because China has a strong demand for items less consumed in the United States.

“Without shipments to China and the premiums generated by bids from Chinese buyers, the U.S. beef industry is missing opportunities estimated at $150-165 per head, or $4 billion annually. At a time of record-high costs of production, we are missing a top customer and unable to truly maximize the value of every animal produced. We appreciate President Trump’s focus on rebuilding the U.S. cattle herd, and China upholding its Phase One commitments is an important driver of the herd rebuild,” Halstrom continued.

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USTR is inviting public comments related to this investigation. It will also hold a hearing in connection with the investigation on Dec. 16, 2025. Interested parties should submit written comments, requests to appear at the hearing and a summary of the testimony by Dec. 1, 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 will open on Oct. 31 and will be available here .