China pushed back against the United States after Washington signaled it would raise Beijing's non-compliance with the 2020 "Phase One" trade deal ahead of an upcoming summit between the two nations.
A spokesperson for China's Ministry of Commerce issued a statement on its website on the 25th, responding to recent remarks by U.S. Trade Representative Jamieson Greer that he would continue pursuing a Section 301 investigation into China's implementation of the Phase One trade agreement.
"Since the Phase One trade agreement took effect in early 2020, China has upheld the spirit of the contract and worked to overcome multiple adverse factors, including the sudden pandemic shock, resulting supply chain disruptions, and global economic decline," the spokesperson said. "We faithfully fulfilled our obligations under the agreement."
The spokesperson added that China completed its commitments on schedule regarding strengthened intellectual property protection and opening of financial and agricultural markets, and "fully honored its promises" in expanding trade cooperation.
"In contrast, the United States strengthened export controls against China, restricted bilateral investment, and continuously intensified suppression and restrictive measures in trade and other areas," the spokesperson said. "This obstructed normal trade and investment activities between our two countries, violated the spirit of the agreement, and destroyed the atmosphere and conditions for implementing the deal."
The spokesperson urged the U.S. to "view the Phase One agreement's implementation objectively and rationally," emphasizing that Washington "should not shift blame" and "must not exploit opportunities to create problems."
The Phase One trade deal was reached following trade tensions during President Donald Trump's first term. Trump imposed tariffs on China shortly after taking office and signed the agreement with Beijing in January 2020 after 20 months of negotiations, initiating a tariff truce.
Under the agreement, China was required to increase purchases of U.S. goods and services by $200 billion over two years compared to 2017 levels. However, China purchased $135 billion worth in 2020 and $178 billion in 2021, falling short of the "additional $200 billion" target. While the U.S. has pointed to the unmet purchase commitments, China has maintained that COVID-19 prevented it from reaching the targets.
In a media interview on the 22nd (local time), Greer said the April U.S.-China talks "will proceed as scheduled and will be very successful," but added, "First, we want to verify that China is complying with its obligations, including continuing the promised purchases and supplying us with rare earth elements."