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Review of U.S.-China Phase One Agreement: Did It Live Up to Expectations?

On Oct. 24, 2025, the United States Trade Representative (USTR) announced the initiation of a Section 301 investigation to review China’s implementation of the Phase One Agreement entered into during President Donald Trump's first term in office. Section 301 of the Trade Act of 1974 is designed to address unfair foreign practices affecting U.S. commerce. The review will consider whether China fully implemented its commitments under the agreement and the burden on U.S. commerce resulting from any non-implementation by China of its commitments.

The announcement by USTR acknowledges that despite entry into force more than five years ago, China does not appear to have lived up to its commitments under the Phase One Agreement with respect to non-tariff barriers, market access, and purchases of U.S. goods and services.  Key among these were purchases of goods from the agricultural sector.

In an unpublished Federal Register notice, the USTR will open dockets for submission of written comments from interested parties between Oct. 31, 2025, until Dec. 1, 2025.  The notice invites parties to consider comments on issues such as whether non-implementation by China of its Phase One Agreement commitments denies benefits to the United States, provides concrete examples of non-implementation, and to estimate the burden or restriction on U.S. commerce resulting from non-implementation, among others.

Additionally, the announcement indicates that the USTR plans to hold a hearing in connection with this investigation on Dec. 16, 2025.