US Opens Trade Probe Into China's Phase One Commitments Before Trump-Xi Talks

The U.S. has launched a Section 301 investigation into China's adherence to the Phase One trade deal. This probe was announced by U.S. Trade Representative Jamieson Greer. The timing is strategic, occurring shortly before a scheduled meeting between Trump and Xi Jinping at the APEC summit. The Phase One agreement, signed in 2019, aimed to reform Chinese practices and increase U.S. purchases. The investigation will assess if China has violated U.S. trade rights. China's failure to meet commitments regarding market access and purchase targets is a key focus. The shift in sourcing agricultural products has also caused issues. Trump has expressed optimism about reaching a "good deal" with China. A trade truce is set to expire soon, adding pressure to the negotiations. Trump has threatened tariffs on rare earth minerals. Market reaction has been subdued so far, despite the escalating trade tensions. The upcoming meeting and statements will be closely watched.