USCBC Comment on the Section 301 Investigation of China’s Implementation of Commitments under the Phase One Agreement

The US-China Business Council (USCBC) welcomes the opportunity to submit comments to the Office of the United States Trade Representative (USTR) regarding the initiation of the Section 301 investigation into China’s implementation of the Economic and Trade Agreement Between the Government of the United States of America and the Government of the People’s Republic of China (“Phase One Agreement”).

USCBC represents about 270 American companies that do business in China. Our membership includes some of the largest and most iconic American brands, in addition to small- and medium-sized enterprises. Our members represent a wide range of industries and sectors, including agriculture, manufacturing, healthcare, technology, and financial services.

When the Phase One Agreement was signed in 2020, USCBC strongly supported the deal as a necessary mechanism to advance a more balanced and mutually beneficial commercial relationship between the United States and China. We viewed the Agreement’s structural commitments — specifically those addressing non-tariff barriers and regulatory standards — as essential for correcting long-standing market distortions and enhancing the ability of US companies to compete in China. However, five years following the Agreement’s entry into force, significant gaps in implementation persist. While China has made progress in certain areas, it has not fully met its obligations in several critical sectors, creating continued uncertainty and uneven market access for American companies.

USCBC supports the Administration’s efforts to ensure American companies can compete on a level playing field. We believe that addressing outstanding trade obligations is essential to establishing a reciprocal commercial relationship that supports American businesses, farmers, and workers. The comments detailed below outline specific areas where implementation of the Phase One Agreement remains incomplete or inconsistent.