The United States has begun investigating China's compliance with the Phase One trade agreement.

The Office of the United States Trade Representative has officially launched a "Section 301 investigation" into China's Phase One trade agreement.

Interpretation: The U.S. announcement to restart the Section 301 investigation indicates that the U.S. believes China has not fully complied with the Phase One agreement, such as commitments on purchases, intellectual property, and market access. This could pave the way for a new round of tariffs or trade sanctions, signaling an escalation in trade tensions.

It may also be an effort to apply pressure on China ahead of the meeting with Xi Jinping on October 30.

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