ISTANBUL

The US Trade Representative (USTR) on Friday launched a Section 301 investigation into China’s implementation of the Economic and Trade Agreement that the two countries signed in 2019.

"The 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," it said in a statement.

The USTR stressed that China agreed to make structural changes to correct distortive acts, policies, and practices in the areas of intellectual property, technology transfer, agriculture, and financial services, and included certain issues with the deal in 2019.

"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," it noted.