Tensions in US-China trade relations are flaring up again. China’s Commerce Ministry sharply rebuked comments from US Trade Representative Jamieson Greer, who signaled plans to intensify a Section 301 probe into China’s adherence to the 2020 Phase One economic and trade agreement, hinting at possible tariff hikes.
Signed at the height of the trade war, the deal promised mutual concessions on purchases, IP rights, and market openings. China’s spokesperson countered that Beijing has honored every commitment amid extraordinary headwinds. Overcoming pandemic shocks, supply bottlenecks, and recessionary forces, China bolstered intellectual property enforcement, liberalized key sectors like finance and farming, and met trade targets comprehensively.
Washington’s actions tell a different story. By tightening export restrictions and blocking investments, the US has eroded the deal’s foundation, creating a hostile environment for execution. China’s white paper meticulously documents these violations, calling out deviations from agreed principles.
Bright spots exist: Five successive rounds of talks since last year have yielded concrete results, rebuilding some trust. China calls on the US to assess compliance fairly, without bias. Eager for expanded partnership, Beijing remains open to collaboration. However, should the US press ahead with punitive probes, China pledges unwavering defense of its lawful interests through all required steps.
This latest salvo reflects persistent divides. Investors brace for volatility as tariffs could ripple through global commerce, affecting everything from tech components to consumer goods. Diplomacy may yet prevail, but mutual accusations risk prolonging uncertainty.