Washington DC [US], October 25 (ANI): China on Saturday strongly opposed a US Trade Representative (USTR) probe into its compliance with the Phase One trade agreement, accusing Washington of escalating economic pressures and spreading false narratives that undermine bilateral ties.

'China firmly opposes the US's false accusations and related review measures,' said Liu Pengyu, a spokesperson of the Chinese Embassy in the US, in a post on X.

The embassy's sharp rebuke came hours after USTR announced the initiation of a Section 301 investigation to scrutinise whether Beijing has fully honoured its commitments under the Economic and Trade Agreement signed during US President Donald Trump's first term.

'China as a major country that takes its responsibilities seriously, China has scrupulously fulfilled its obligations in the Phase One Economic and Trade Agreement by protecting intellectual property, increasing imports, and providing greater market access, which has created a favorable business environment geared to investors of all countries, including US companies, for them to share the benefits of China's economic development,' the spokesperson asserted.

According to the Office of the USTR, the Phase One deal, effective since 2020, required China to undertake structural reforms in areas like intellectual property, technology transfer, agriculture, and financial services, while committing to boost purchases of US goods and services to address the trade deficit.

USTR Jamieson Greer, in announcing the probe, highlighted concerns over non-tariff barriers, market access, and purchase shortfalls despite repeated US engagements.

'President Trump made history in his first term when he stood up for the American worker and brokered the Phase One Agreement, establishing a more fair and reciprocal trade relationship with China,' Greer said.

'The initiation of this investigation underscores the Trump Administration's resolve to hold China to its Phase One Agreement commitments, protect American farmers, ranchers, workers, and innovators, and establish a more reciprocal trade relationship with China for the benefit of the American people,' he added.

The investigation, authorised under Section 301 of the Trade Act of 1974, will assess any burdens on US commerce from alleged non-implementation and potential responses, including tariffs or other remedies.

USTR has invited public comments, with submissions due by December 1, 2025, and a hearing scheduled for December 16, 2025.