An American senator has asserted that China should cease the export of fentanyl precursors to the United States before engaging in any trade negotiations. This stipulation adds complexity to the possibility of upcoming discussions aimed at easing tensions between the two largest global economies.
Steve Daines, an ally of former President Donald Trump, presented this condition during meetings with Chinese officials in Beijing over the weekend. The Republican senator expressed hope that a leadership meeting could occur by the end of the year, although Trump had previously indicated it might happen soon.
Daines remarked in a phone interview with Bloomberg News on Sunday that resolving the fentanyl precursor issue is essential before discussing tariffs and non-tariff barriers. The Montana senator, who previously served as an intermediary for Trump during his initial trade conflict with China, met with several Chinese leaders, including Premier Li Qiang, but did not meet with President Xi Jinping. Xi had previously engaged with then-Senate Majority Leader Chuck Schumer and California Governor Gavin Newsom in 2023 when they led separate delegations to Beijing.
Although Daines described his discussion with Li as constructive, he underscored a request that Beijing may find challenging to fulfill, particularly with new U.S. trade measures on the horizon. Daines stressed to the Chinese leadership that President Trump requires China to take decisive steps to halt the flow of fentanyl precursors, rather than simply slowing it.
This demand contrasts with China’s assertions, made earlier this month, that it has already aggressively combated the fentanyl trade. Beijing argued that Washington ought to have expressed gratitude instead of imposing tariffs on Chinese imports.
Dexter Roberts, a nonresident senior fellow at the Atlantic Council Global China Hub, commented that as tariffs increase on both sides, the probability of a meeting between Xi and Trump diminishes. Communist Party officials met with Daines and global CEOs just before an April 1 deadline for a U.S. assessment of Beijing’s trade compliance, as well as Trump’s plans for global reciprocal duties.
China is expected to retaliate against any new U.S. trade restrictions, as was the case when Trump recently imposed additional tariffs on Chinese goods. China responded with tariffs on various U.S. agricultural products and halted soybean imports from specific U.S. entities.
There have been mixed signals about a potential meeting between the U.S. President and Xi Jinping. Trump has indicated that the Chinese leader might visit Washington in the foreseeable future, yet Beijing has stated it has no information to provide.
U.S. Secretary of State Marco Rubio suggested that a meeting between Xi and Trump would require justification and currently, no such meeting is scheduled. Daines mentioned a mutual desire for a high-level meeting, though no date is set.
Wu Xinbo, director at Fudan University’s Center for American Studies, views Daines’ visit as a positive development for bilateral relations, even if a meeting between Xi and Trump is not imminent. Wu emphasized the importance of initiating negotiations to prevent further escalation of tensions.
Chinese officials have noted the U.S.’s failure to specify measures needed to address its involvement in the illegal fentanyl trade, which Trump cited as justification for tariffs. Trump’s team rejected this notion, expecting condemnation from China and stringent penalties for smugglers.
During a meeting with Daines, Chinese Premier Li stated that imposing tariffs will not lead to any country’s development and prosperity, advocating instead for openness and cooperation. Li reiterated that no party benefits from a trade war and expressed hope for honest communication and practical cooperation between the U.S. and China.
Daines, who worked in China and Hong Kong in the 1990s with Procter & Gamble Co., attended this meeting alongside prominent U.S. executives, such as FedEx Corp. CEO Raj Subramaniam and Boeing Co. Senior Vice President Brendan Nelson. Other high-ranking officials from companies like Cargill Inc., Pfizer Inc., and Qualcomm Inc. were also present.
China’s Vice Premier He Lifeng met with leaders of multinational corporations and expressed welcome for expanded investments, committing to an enhanced business environment. Daines raised issues concerning the renewal of export licenses for U.S. beef producers and expressed interest in organizing a bipartisan delegation of U.S. senators to China, pending the confirmation of David Perdue as ambassador. Perdue previously worked in Asia, aiding American companies in outsourcing labor before transitioning to politics.
