The United States announced on Friday an investigation into China's alleged failure to comply with the 2020 trade agreement, just days before the two countries' leaders met in South Korea.

White House Trade Representative Jamieson Greer said the move"reinforces the Administration's commitment to enforcing the Phase One deal with China, which protects American farmers, workers and businesses."

The agreement, negotiated during President Donald Trump's first term, called for Beijing to significantly increase imports of agricultural and industrial products from the United States to reduce the bilateral trade deficit, but it was never implemented.

The investigation aims to determine"the effects and restrictions on US trade resulting from China's non-compliance" and define "the actions that should be taken in response," Greer added, underlining the goal of achieving"a more balanced trade relationship that benefits the American people."

The process includes a public consultation phase and two hearings in December, allowing for written submissions from affected companies and organizations.

The decision came amid growing tension between Washington and Beijing.

In early October, China announced new controls on the export of rare earths and refining technologies—essential materials for strategic sectors such as digital and defense—in what Trump called a"hostile measure."

The US president threatened Beijing with "massive retaliation", including 100% tariffs on Chinese goods and the suspension of the bilateral meeting scheduled for the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

Despite the verbal escalation, Trump has since confirmed that he will meet with Chinese President Xi Jinping on October 30, saying he hopes to"reach an agreement on all issues."