Trade Rep Calls Out China on Phase One Promises, Hearing Set
Published Date: 10/28/2025
Notice
Summary
The U.S. is launching an investigation because China might not be sticking to the trade promises made in the 2020 Phase One Agreement. This affects American businesses and trade policies, with public hearings and comment periods starting soon to decide next steps. If you want to share your thoughts or speak at the hearing, act fast—deadlines are tight and could impact future trade rules and money flows.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 4 costs, 1 mixed.
USTR May Impose Duties on Chinese Goods
USTR is explicitly seeking comment on the level and scope, if any, of additional duties on products of China as a possible response to non-implementation of the Phase One Agreement. To be assured consideration, submit written comments by 11:59 p.m. EST on December 1, 2025.
Possible Import Restrictions on Chinese Products
USTR is requesting input on whether to impose import restrictions on products of China to address non-implementation of the Phase One Agreement. The agency asks for views on the appropriate aggregate level of trade to be covered and again sets the December 1, 2025 comment deadline for consideration.
Record of Prior High-Value Tariffs
The notice documents that USTR previously imposed additional ad valorem duties on Chinese goods at rates including 25 percent (List 1 effective July 6, 2018; List 2 effective August 23, 2018) and actions affecting lists with aggregate trade values up to approximately $300 billion. It also records later adjustments such as reducing List 4A duties to 7.5 percent effective February 14, 2020.
Section 301 Investigation Launched
On October 24, 2025 the U.S. Trade Representative opened a Section 301 investigation into whether China has failed to implement the January 15, 2020 Phase One Agreement. USTR is taking written comments (dockets open October 31, 2025), must receive comments and hearing appearance requests by 11:59 p.m. EST on December 1, 2025, and will hold a public hearing beginning December 16, 2025.
Possible Fees or Restrictions on Chinese Services
USTR is asking for public comment on whether to impose fees or restrictions on services of China as a potential response to non-implementation of the Phase One Agreement. Comments on this option must be submitted by 11:59 p.m. EST on December 1, 2025.
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