USTR opens Section 301 probe into China's Phase One commitments

The U.S. Trade Representative on Friday opened a formal investigation into whether China met its obligations under the 2020 "Phase One" trade agreement, officials said, launching a probe under Section 301 of the Trade Act of 1974 as leaders prepare to meet in Asia. The inquiry, announced the same day President Donald Trump departed for a trip to the region, comes days ahead of a planned meeting between Mr. Trump and Chinese President Xi Jinping on the sidelines of an economic gathering in South Korea.

USTR Jamieson Greer said the investigation reflects the administration's intention to hold China to the Phase One commitments and to protect American farmers, workers and innovators. The review will examine whether Beijing fulfilled promises on increased purchases of U.S. goods and services, improved market access and enhancements to intellectual property protections. The office has scheduled a public hearing on the case for Dec. 16 and is expected to solicit comments from U.S. industries and labor groups as part of the process.

Under the 2020 agreement, China pledged to buy an additional $200 billion in U.S. goods and services and to undertake structural reforms. Independent...