China says it is willing to collaborate with the US on Fentanyl

BEIJING – China is willing to do more to tackle concern about the White House about illegal fentanyl trade, but it will be “something different” if the constant debate about the drug facilitates more American rates about the second largest economy in the world, an official of the Chinese Ministry of Foreign Affairs Wednesday.

Washington should have “had a big thank you” to China about what it has done to limit trade in the US in the US, the official said via an official English translation, claiming that the White House did not appreciate the effort and, in place this year, raised Chinese goods on Chinese goods.

Since the introduction in January, US President Donald Trump has increased the rates for the Chinese goods by 20% on the basis of the alleged role of the country in the US Fentanyl crisis. The addictive drug, forerunners that are usually produced in China and Mexico, has led to tens of thousands of deaths every year in the US

The White House did not immediately respond to a CNBC request for comments.

Earlier this month, the Chinese government published one white paper To announce her efforts to limit the production and export of Fentanylvoorlopers in recent years. The official did not respond directly to a question whether China would stop her recent efforts to limit such a trade.

Under the Biden administration, the US and China had said that Fentanyl was one of the few areas where the two countries could work together. Both parties held dedicated conversations in Beijing on the subject last year.

Earlier this year, Trump indicated that he could also use rates as a way to put pressure on China to force bytedance in Beijing to sell Tiktok, which runs against one At the beginning of April Deadline To stay available in the US

Trump had emphasized rates as a way to reduce the American trade deficit with China during his first presidency. Just before the start of the COVID-19 Pandemie, the two parties reached a “phase one” trade agreement that requires Beijing to increase his purchases of American goods. American data show that The trade deficit with China Renewed to $ 295.4 billion in 2024, from $ 346.83 billion in 2016, just before Trump’s first mandate.

But the differences in the trade have continued since the start of the second mandate of the leader of the White House. The average effective American rate on Chinese goods is now intended to reach 33%, an increase of approximately 13% before Trump started his last term, according to estimates of the Chief China Economist Ting Lu from Nomura.

Beijing has responded to the latest American rates with targeted tasks on energy and agricultural products, while the restrictions on the export of critical minerals that the US needed to tighten. The Chinese Ministry of Trade has also added various American companies, usually in space travel or defense, to lists that limit their ability to do business with China.

The official of the Ministry of Foreign Affairs said on Wednesday that the countermeasures of China were “legitimate actions” to protect his own interests.

Allianz estimates that the extra 20% American rates on Chinese goods would reach Chinese GDP growth by 0.6 percentage points this year and the following. But the company still expects the Chinese economy to grow by 4.6% this year and 4.2% in 2026, based on the assumption that Stimulus can reduce the rate impact.

“I would tend to say that the retribution is not that strong, perhaps leaving room for negotiations,” said Francoise Huang, senior economist for Asia-Pacific and global trade at Allianz Trade, in a CNBC interview last week.