Trump to Probe China’s Compliance with 2020 Trade Deal

In a move that could potentially escalate tensions between the two economic giants, the Trump administration announced on Friday that it will investigate whether China has lived up to its commitments under the 2020 trade deal. The probe was announced just ahead of a highly anticipated summit between US and Chinese leaders, where trade relations are expected to be a key topic of discussion.

The investigation will focus on whether China has fulfilled its obligations under the Phase One trade agreement, which was signed in January 2020. The deal called for China to increase its purchases of US goods and services, including agricultural products, energy, and manufactured goods. However, US officials have long been skeptical about China’s compliance with the agreement, citing a significant shortfall in Chinese purchases.

The announcement of the investigation comes as the Biden administration seeks to take a tougher stance on China on trade and other issues. The US-China trade relationship has been a contentious issue for years, with the Trump administration imposing tariffs on Chinese goods in 2018. While the Biden administration has not taken a radically different approach, it has emphasized the need for a more strategic and coordinated approach to trade policy.

The upcoming summit between US and Chinese leaders is seen as an opportunity for both sides to discuss their differences and find areas of common ground. However, with the investigation into China’s compliance with the 2020 trade deal, it’s unclear whether the two sides will be able to make significant progress on trade issues. The probe could potentially lead to new tariffs or other trade restrictions, which could have significant implications for the global economy.