US launches probe into China's compliance with 2020 pact; German FM's China visit postponed
by AFP Staff Writers
Washington (AFP) Oct 24, 2025

The United States on Friday started an investigation into China's compliance with a 2020 deal that marked a truce in their trade war, days before President Donald Trump is due to meet his Chinese counterpart Xi Jinping.

The probe was launched in light of the Chinese government's "apparent failure to comply with the January 15, 2020" agreement, said the US trade envoy's office, and Washington could take further action in response.

The move "underscores the Trump Administration's resolve to hold China to its Phase One Agreement commitments," said US Trade Representative Jamieson Greer.

But it could further inflame tensions between the world's two biggest economies, with temperatures again rising in Trump's second presidency.

Trump has imposed sweeping duties on US partners since returning to the White House this year, and Washington and Beijing have engaged in tit-for-tat retaliation.

At one point, tariffs on both sides reached triple digits, snarling supply chains. While both sides have de-escalated tensions, their truce remains shaky.

Washington has previously threatened to enforce China's compliance with the "Phase One" trade deal inked in 2020, which saw Beijing pledge to boost purchases of US products and services by hundreds of billions of dollars over 2020 and 2021.

But the target was not met amid the Covid-19 pandemic.

Among industries, China had pledged to step up purchases of US agricultural goods.

But fresh tensions this year saw Beijing hike tariffs on US agriculture products, including soybeans, hitting a key support base of Trump.

Chinese buyers also halted new soybean orders from the US autumn harvest, battering the sector.

On Friday, Greer vowed to protect US farmers, ranchers and workers.

"Five years following entry into force, China's lack of compliance with the Phase One Agreement appears to have undermined the conditions of competition for US companies seeking to trade with and operate in China," the USTR's office said in its notice.

In its next steps, the USTR is expected to call for comments to be submitted.

German FM's China visit postponed amid tensions
Berlin (AFP) Oct 24, 2025 - Germany said Friday that a forthcoming visit by its foreign minister to China had been postponed as meetings could not be arranged, at a time of heightened EU-Beijing trade tensions particularly for rare-earths.

"The Chinese side was ultimately able to confirm only the appointment with the Chinese foreign minister, and could not confirm any other additional appointments," a foreign ministry spokeswoman said.

"We very much regret that," she said, noting there were several issues Berlin wanted to raise with Beijing during Foreign Minister Johann Wadephul's visit, which had been due to take place in the coming days.

She listed trade restrictions, particularly when it comes to rare earths and semiconductors, as well as China's potential to influence Russia over its war in Ukraine.

"It is in our interest that China contributes to achieving a just and lasting peace in Ukraine. No other country has as much influence on Russia," the spokeswoman said.

Wadephul intends to hold phone talks with his Chinese counterpart soon, she said.

Tensions with the European Union have flared in recent times, particularly on the economic front.

China this month announced new controls on the export of rare-earth technologies, used to make magnets crucial to the auto, electronics and defence industries.

The EU says the restrictions have forced some of the bloc's companies to halt production and inflicted economic harm.

The Dutch move to effectively take control of chipmaker Nexperia, which is based in the Netherlands but owned by a Chinese company, has also sparked a row.

Beijing has since banned exports of some of the company's products from China, triggering fears of shortages of crucial chips in Europe, particularly for automakers.

German Economy Minister Katherina Reiche said earlier Thursday that Berlin had pressed the Chinese commerce ministry to allow chip exports again.

"The situation has not yet been resolved, but we are still working on it," she told reporters while on a visit to Ukraine.

China and Germany, the world's second- and third-biggest economies respectively, have traditionally had close relations, particularly on the economic front.

But ties have frayed over myriad issues in recent years, ranging from claims of Beijing's unfair trade practices to human rights.

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