European Union says it will challenge the China-US trade agreement at World Trade Organization if it creates distortions in market that harm EU companies.

Talking to reporters in Beijing, the EU Ambassador to China Nicolas Chapuis said the 28-nation bloc will monitor the implementation of "phase one" of the deal that was signed on Wednesday by US President Donald Trump and Chinese Vice Premier Liu He.

The EU envoy said during a meeting at Chinese foreign ministry, he was given formal assurances that in no way European businesses would be affected by the US-China deal.

NNR/Khokhar