China says it’s willing to cooperate with the U.S. on fentanyl

China’s Ministry of Foreign Affairs expressed willingness to address White House concerns regarding the illicit fentanyl trade, but warned against using the issue as a justification for imposing more tariffs on China. The Ministry official emphasized that China has made significant efforts to restrict fentanyl trade in the U.S., but instead of appreciating these efforts, the White House has imposed tariffs on Chinese goods twice this year.

The Trump administration has increased tariffs on Chinese goods by 20% since January, citing China’s alleged role in the U.S. fentanyl crisis. Fentanyl, a highly addictive drug, has been linked to tens of thousands of overdose deaths in the U.S. each year, with its precursors primarily originating from China and Mexico.

In response to the escalating trade tensions, the Chinese government recently released a white paper detailing its efforts to curb the production and export of fentanyl precursors. While the Biden administration has acknowledged fentanyl as an area where the U.S. and China can collaborate, the ongoing debate over the issue has strained relations between the two countries.

Apart from the fentanyl issue, trade tensions between the U.S. and China have also been fueled by disputes over tariffs and trade deficits. The Trump administration had used tariffs as a tool to pressure China on various issues, including the sale of TikTok and reducing the trade deficit. Despite reaching a “Phase One” trade agreement in 2020, differences on trade have persisted, leading to an increase in tariffs on Chinese goods.

In response to the U.S. tariffs, China has imposed retaliatory measures on U.S. products and tightened restrictions on critical mineral exports. The Chinese Ministry of Commerce has also placed restrictions on U.S. companies, particularly in the aerospace and defense sectors, limiting their business activities in China.

The trade tensions and tariffs between the two countries are expected to have an impact on China’s GDP growth, with estimates suggesting a potential 0.6 percentage point decline in growth over the next two years. However, experts believe that there is still room for negotiations to alleviate the impact of tariffs on the Chinese economy.

Overall, the trade dispute between the U.S. and China highlights the challenges of balancing economic interests with geopolitical concerns. As both countries navigate these complex issues, finding common ground and fostering cooperation will be essential for maintaining stability and promoting global economic growth.