U.S. to Investigate China’s Compliance With 2020 Trade Deal

The Trump administration is preparing to file a trade investigation into China’s failure to uphold the terms of a trade deal signed in President Trump’s first term, according to a person familiar with the investigation, a move that could result in more tariffs and increased tensions between the United States and China.

The move follows weeks of strained relations between the world’s largest economies, and could be an effort by the United States to try to amass leverage ahead of a meeting next week between Mr. Trump and the Chinese leader Xi Jinping.

The investigation, which could be announced as soon as Friday, would be filed by the United States Trade Representative under Section 301 of the Trade Act of 1974, which allows the administration to investigate the trade practices of foreign countries.

The inquiry could pave the way for more tariffs on Chinese imports, although no such decision has yet been made. The administration has already imposed a minimum 55 percent tariff on exports from China, with duties on some goods much higher.

After China announced new control on global exports of rare earth minerals in recent months, Mr. Trump responded by threatening an additional 100 percent tariff on Chinese products starting Nov. 1. Mr. Trump and Mr. Xi are scheduled to talk in person on Oct. 30 on the sidelines of an international meeting in South Korea.

The Trump administration has repeatedly complained about China’s failure to comply with terms of a trade agreement signed in 2020. After months of negotiations, China committed to buying an additional $200 billion worth of American goods and services, as well as opening its markets to American companies and providing greater protection for American technology and trade secrets.

A subsequent analysis found that China had bought none of the additional $200 billion of U.S. exports that it promised. Shortly after the deal was signed, the Covid pandemic hit, dampening Chinese purchases of U.S. exports.