The Trump administration began an investigation Friday into whether China complied with the terms of a trade deal it struck with President Trump during his first term in office, ratcheting up tensions between the world's largest economies.
The investigation could lead to further tariffs on Chinese imports. This comes as Trump prepares to hold a highly significant meeting with Chinese leader Xi Jinping next week on the sidelines of a summit in South Korea. Other U.S. officials are in Malaysia holding talks with Chinese officials to try to repair relations ahead of that meeting.
While these meetings are expected to largely ease tensions, there is a possibility that the talks, coupled with the new US trade investigation, could further escalate tensions. Both sides have an economic interest in easing tensions and stopping a trade war that has the potential to halt trade between the two nations and cripple U.S. industry. The United States and China have been negotiating tough economic measures in recent weeks, with China imposing sweeping restrictions on mineral exports and Mr. Trump responding by threatening an additional 100 percent tariff on Chinese products from November 1.
The Trump administration has repeatedly complained that China is not honoring the terms of a trade deal the United States signed with Beijing in 2020. In a statement, the Office of the United States Trade Representative said the investigation will examine whether China has complied with its obligations and whether there have been negative impacts on U.S. companies, as well as what actions, if any, should be taken in response.
Jamieson Greer, the trade representative, said the investigation “underscores the Trump administration's determination to hold China to its commitments under the deal,” protect American farmers and workers and “build a more reciprocal trade relationship.” Mr Greer is among the officials meeting with Chinese counterparts in Malaysia.
The 2020 trade deal was the culmination of Trump's first trade war with China. Chinese officials pledged to buy $200 billion more in American goods and services, including natural gas, soybeans and aircraft. Among other things, they also agreed to open markets to American companies and better protect American technology and trade secrets.
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