China says it is ready to cooperate with America on Phentenel

Beijing – China is willing to more to overcome the concerns of the White House about illegal fentinel trade, but it would be “a different thing” if the drug debate provides more American tariffs on the world’s second largest economy, an official of the Chinese Foreign Ministry told reporters on Wednesday.

Washington had said a big thanks to China for banning the fantaneel trade in the US, the officer said through an official English translation, the White House claimed that the White House did not appreciate the effort and instead extended duties on Chinese goods twice this year.

Since assuming office in January, US President Donald Trump has increased tariffs by 20% on Chinese goods based on the alleged role of the country in the US Phentenail crisis. Drug addiction, for the pioneers for whom mostly produced in China and Mexico, has led thousands of overdose deaths in the US every year

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

Earlier this month, the Chinese government in the last few years published a white paper to promote its efforts to reduce the production and exports of Phentineel forearm. The official did not directly answer the question whether China would stop its recent efforts to ban such business.

Under the Biden administration, the US and China stated that Phantannele was one of the few areas in which the two countries could cooperate. Both sides held a dedicated talks on this subject in Beijing last year.

Trump indicated earlier this year that he could also use tariffs as a way to pressurize China, forcing Beijing-based biodes to sell Tikok, which is running against the start of April to be available in the US.

Trump emphasized tariffs as a way to reduce the US trade deficit with China during his first presidential post. Just before the introduction of the Covid-19 epidemic, both sides reached a “phase a” trade agreement, in which Beijing needed to increase the purchase of American goods. American data shows that the trade deficit with China compressed to $ 295.4 billion in 2024, from $ 346.83 billion in 2016, just before Trump’s first mandate.

But the difference between the second mandate of the White House leader has continued since the beginning of January. According to estimates from Nomura’s main China economist Ting Lu, the average effective US tariff rate on Chinese goods before Trump starts his latest tenure is now determined to hit up to 33%.

Beijing has responded to the latest American tariff with targeted duties on energy and agricultural products, while American is required by tightening restrictions on export of significant minerals. China’s Ministry of Commerce has also added many American companies, mostly in aerospace or defense, to list their ability to trade with China.

The Foreign Ministry official said on Wednesday that China’s counter -protests were “legitimate action” to protect their own interests.

Allianz estimates that additional 20% of the US tariffs on Chinese goods will affect China’s GDP growth with 0.6 percentage points this year and next year. But the firm still hopes that the Chinese economy may increase 4.6% this year and 4.2% in 2026, based on the assumption that stimulation can reduce the tariff effect.

“I would say that vengeance is not so strong, perhaps leaving a place for talks,” Francois Huang, Senior Economist of Asia-Pacific and Global Trade, said in a CNBC interview last week in Allianz Trade.