China dismisses US remarks on phase-one trade deal

China firmly rejected the unfounded remarks from the United States suggesting that Beijing has failed to implement its commitments under the phase-one economic and trade agreement, the Ministry of Commerce said on Wednesday, calling on Washington to "not shift blame" or "create trouble".

Beijing's comments came in response to US Trade Representative Jamieson Greer's announcement that his office would continue pursuing a Section 301 investigation into China's implementation of the agreement, which could potentially lead to new tariff measures.

"If the US side insists on advancing the relevant investigation, or even introduces restrictive measures such as tariffs on the grounds of the investigation, China will take all necessary measures to resolutely safeguard its legitimate rights and interests," a spokesperson with the ministry said.

Following the phase-one economic and trade agreement coming into force in early 2020, China has upheld its contractual spirit and earnestly fulfilled its obligations under the deal despite multiple adverse factors, including the sudden impact of the COVID-19 pandemic, subsequent supply chain disruptions, and the global economic recession, the spokesperson stated.

China has completed its commitments on schedule in areas including strengthening intellectual property protection and promoting market opening in finance and agricultural products, and in expanding trade cooperation. Beijing has also fully implemented its commitments, the spokesperson said.

"Looking at the US side, it has intensified export controls against China, restricted two-way investment, and continuously escalated suppression and restrictive measures in the economic and trade field and other areas," the spokesperson said.

"These actions hinder normal bilateral trade and investment activities, violate the spirit of the agreement, and undermine the atmosphere and conditions for its implementation," the spokesperson added

Since last year, China and the US have held five rounds of economic and trade consultations, achieving a series of important outcomes, the spokesperson said, noting these included consensus on extending the suspension of reciprocal tariffs, agricultural trade, export controls, and reducing investment restrictions.

"During this process, the two sides have also communicated multiple times regarding the Phase One economic and trade agreement," the spokesperson added.

The ministry expressed hope that the US would take an objective and rational view of phase-one agreement implementation issues, "not shift blame and responsibility, and even more so not take the opportunity to 'create trouble' or 'stir up incidents'."

China stands ready to work with the US, make good use of the China-US economic and trade consultation mechanism, focus on the future, concentrate on implementing existing consensus outcomes, and actively explore areas of converging interests, the spokesperson said.