U.S. Urged Not to Use Phase-One Agreement as Provocation

China's Ministry of Commerce (MOFCOM) has expressed its willingness to collaborate with the United States in improving their economic relationship, urging for consensus and stability in their dealings. The ministry emphasized the importance of an objective and rational approach in implementing the phase-one trade agreement.

The remarks came in response to statements made by US Trade Representative Jamieson Greer, who reaffirmed the US's commitment to pursuing a Section 301 investigation regarding China's compliance with the phase-one agreement. Greer hinted at the possibility of tariff measures if China is found to be in violation.

MOFCOM reassured that since the phase-one agreement took effect in early 2020, China has adhered to its terms, diligently working to address the challenges posed by the COVID-19 pandemic and its aftermath, which included disruptions to supply chains and the global economy.

The spokesperson highlighted that China has fulfilled its obligations under the agreement, making progress in vital sectors such as intellectual property protection, financial services, and agricultural markets. These efforts reflect China's commitment to expanding trade cooperation as agreed upon.

Conversely, the US has enacted tightening measures such as export controls and restrictions on bilateral investments. According to the MOFCOM spokesperson, these actions have hindered normal trade relations and violate the spirit of the agreement, ultimately complicating its implementation.

China has extensively detailed its position on the economic and trade relations with the US in a white paper released earlier this year. This document outlines its stance on various issues related to the ongoing trade dynamics.

Since last year, China and the US have engaged in five rounds of economic talks, yielding several significant outcomes, including agreements to extend the suspension of reciprocal tariffs and discussions on agricultural trade and export controls.

MOFCOM stated that both countries have made substantial progress in discussions about the phase-one agreement implementation. Despite this, there remains a need to navigate existing challenges collaboratively to maintain healthy economic ties.

China is prepared to work with the US, leveraging the consensus established between their leaders to effectively utilize the economic and trade consultation mechanism. The focus will be on implementing mutually agreed-upon trade objectives and exploring areas of common interest.

However, the MOFCOM spokesperson firmly cautioned that should the US proceed with the investigation and impose tariffs based on its findings, China will be compelled to take all necessary actions to protect its legitimate rights and interests in this rapidly evolving trade landscape.