US Investigates China for Violating 2020 Trade Deal Ahead of Trump-Xi Meeting

U.S. trade officials have opened a Section 301 investigation into China’s compliance with the 2020 Phase One trade deal just days before a planned Trump–Xi meeting.

“The stock market closed higher on Thursday, led by gains in the Nasdaq and Russell 2000, as investors reacted positively to strong corporate earnings and easing US-China trade tensions ahead of a planned meeting between President Trump and Chinese President Xi Jinping”

BusinessToday Malaysia

The investigation sharpens tensions as both sides consider new tariffs and restrictions.

BusinessToday Malaysia

Local Western outlets report the probe focuses on missed purchase targets and ongoing non-tariff barriers.

Figures cited indicate China bought only about 58% of agreed U.S. exports, while other sources estimate the shortfall closer to 60%.

The inquiry coincides with White House confirmation that the meeting will proceed despite tariff threats.

This move highlights Washington’s effort to gain leverage at the negotiation table.

Analysts warn that the investigation itself could further escalate a relationship already strained by reciprocal measures since 2018.

The stakes for the Trump–Xi meeting are extensive, covering key issues such as rare-earth export controls, soybean purchases, fentanyl flows, Taiwan, and high-tech export restrictions.

A tariff truce between the two countries is set to expire in November.

Devdiscourse

Western and Asian media agree that Beijing has adopted a tougher stance by leveraging its dominance in rare-earth elements.

Meanwhile, Washington is threatening to impose more tariffs, including a 100% rate if China does not relax those export controls.

Most analysts expect only limited progress from the meeting rather than a comprehensive agreement.

Some suggest there may be a quick extension of the tariff pause in exchange for targeted actions on soybeans, fentanyl, and rare-earths.

The regional backdrop shows Washington pursuing parallel deals during Trump’s Asia swing through Malaysia, Japan, and South Korea.

“US President Donald Trump is undertaking a major trip to Asia, visiting Malaysia, Japan, and South Korea”

FBC News

These efforts ranged from mediating a Thailand–Cambodia border peace to promoting a $350 billion Korean investment while negotiating auto tariffs.

West Asian and Asian outlets highlight Southeast Asia’s sensitivities, noting that Malaysia courts both Washington and Beijing even amid protests over Gaza.

ASEAN expresses concerns about protectionism, supply-chain disruptions, and trade imbalances that have increased since 2017.

Reports also mention unusual tariff proposals such as restricting used cooking oil.

They caution that global markets should not expect major breakthroughs despite the busy schedule of summits.