U.S. Launches Trade Probe Into China’s Fulfillment of 2020 Agreement Terms

Trade Investigation Initiated Over China Deal Compliance

The Trump administration is preparing to file a trade investigation into China’s implementation of the 2020 trade agreement, according to reports from Washington. Sources familiar with the matter indicate this move could potentially lead to additional tariffs on Chinese imports and further escalate tensions between the world’s two largest economies.

Timing and Strategic Implications

The investigation, which analysts suggest could be announced as early as Friday, comes during a period of strained relations between the United States and China. Reports indicate the timing may represent a strategic effort by the United States to strengthen its negotiating position ahead of an anticipated meeting between President Trump and Chinese leader Xi Jinping scheduled for October 30 in South Korea.

Legal Framework and Potential Consequences

The investigation will reportedly be filed by the United States Trade Representative under Section 301 of the Trade Act of 1974, which provides legal authority to examine foreign trade practices. According to sources, this inquiry could potentially lead to additional tariffs on Chinese goods, though no final decision has been made. The administration has already implemented substantial tariffs, including a minimum 55 percent duty on exports from China, with some products facing even higher rates.

Background: The 2020 Trade Agreement

The Trump administration has repeatedly expressed concerns about China’s fulfillment of the trade agreement signed during President Trump’s first term. The 2020 deal, reached after extensive negotiations, committed China to purchasing an additional $200 billion worth of American goods and services. The agreement also included provisions for China to open its markets to American companies and enhance protection for U.S. technology and trade secrets.

Compliance Shortfalls and Pandemic Impact

Subsequent analysis reportedly found that China had purchased none of the additional $200 billion of U.S. exports specified in the agreement. According to trade experts, the COVID-19 pandemic significantly impacted Chinese purchases of American exports shortly after the deal was signed, contributing to the compliance shortfall.

Recent Escalations and Countermeasures

The trade relationship has faced additional strain in recent months following China’s announcement of new controls on global exports of rare earth minerals. In response, President Trump reportedly threatened to impose an additional 100 percent tariff on Chinese products beginning November 1, just days after his scheduled meeting with President Xi.

Broader Economic Context

Trade analysts suggest the investigation represents the latest development in the ongoing trade tensions between the United States and China that have characterized much of the Trump presidency. The outcome of this investigation and the upcoming leaders’ meeting could significantly influence the future trajectory of U.S.-China economic relations.

This report is based on information from trade correspondents and official sources covering international economic relations.

References

• https://www.piie.com/blogs/realtime-economics/2022/china-bought-none-extra-20…
• http://en.wikipedia.org/wiki/Donald_Trump
• http://en.wikipedia.org/wiki/China
• http://en.wikipedia.org/wiki/Tariff
• http://en.wikipedia.org/wiki/United_States
• http://en.wikipedia.org/wiki/Presidency_of_Donald_Trump

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