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The U.S. government on Friday rejected a petition by American unions that sought an investigation into Chinese labor practices, saying it had evidence that Chinese labor practices were improving.

Engagement with China was resulting in improvement of Chinese labor conditions. Opening a trade investigation that could lead to economic sanctions against China was not the best way to proceed, said a statement issued by the office of U.S. Trade Representative.

The statement also turned down a request filed in June by the AFL-CIO (American Federation of Labor and Congress of Industrial Organizations) and two Congressmen, who contended that China was violating international labor standards and the practices had meant the loss of American jobs.