Chinese Leader Xi Jinping is reportedly sending Minister of Public Security Wang Xiaohong and Vice Premier of the State Council He Lifeng to Switzerland and the United States for trade negotiations, according to sources cited by The Wall Street Journal on Friday, May 9.
Fentanyl is set to be a part of the US-China trade talks, marking the first time that the Chinese government has agreed to openly discuss the fentanyl issue in negotiations. The Trump administration has previously accused China of using fentanyl as leverage, threatening to remove tariffs as part of its cooperation in combating fentanyl.
On Saturday and Sunday (May 10-11), US Treasury Secretary Scott Besset and US Trade Representative Jamieson Greer will meet with Chinese representatives in Switzerland for high-stakes talks.
Earlier on Thursday (May 8), The Wall Street Journal first reported that Xi Jinping had designated his trusted aide Wang Xiaohong as the representative for further engagement between Beijing and Washington, particularly in response to US concerns about fentanyl.
Sources have indicated that at the end of April, Beijing raised some questions to the Trump administration in an effort to understand how the US wanted China to combat the trafficking of chemical precursors used in the production of fentanyl. In response, the White House provided a list of recommendations to the Chinese side.
Reuters reported on Friday (May 9) that they had seen a response letter from the White House, which cited a congressional report stating that China directly subsidizes the production and export of fentanyl precursors through VAT rebates to exporters. Beijing has denied engaging in such actions.
The letter was sent to the Chinese Ministry of Foreign Affairs, Ministry of Commerce, and Ministry of Public Security, urging four actions. First, publicly announce the efforts to combat fentanyl precursors on the front page of People’s Daily, a Chinese state-run newspaper. Second, disseminate similar messages to party members through “party channels.” Third, strengthen regulation of specific chemicals by Chinese authorities. Fourth, deepen law enforcement cooperation between the US and China.
Officials familiar with China’s response reportedly indicated that Beijing finds the first two demands from the US somewhat “haughty,” as if the US is directing China on what to do within its governing institutions.
In recent weeks, as pressure on the Chinese economy has intensified, Beijing has sought to re-engage with the US on the fentanyl issue in hopes of providing an off-ramp to the trade war and allowing both sides to start trade negotiations.
Since the beginning of President Trump’s second term, tariffs on Chinese goods have been increased by 145%, with Beijing retaliating by imposing 125% tariffs on American products.
Approximately 20% of the tariffs imposed by the US on China are related to fentanyl. Trump has stated that most fentanyl is manufactured and supplied by China, with this dangerous and highly addictive drug causing over 100,000 deaths in the US in 2024 alone. Over the past 20 years, millions of Americans have died from drug overdoses, leading to countless families being torn apart.
The Trump administration has long been aware of China’s use of fentanyl as leverage. In February, US Secretary of State Mike Pompeo, in an interview with Fox News, mentioned that fentanyl is a significant concern for the Trump administration.
Pompeo stated that Beijing could immediately stop the flow of fentanyl precursors into the US.
“If you’re there with them (Chinese officials) today, they will tell you: well, we don’t have a drug problem; why should we worry about precursors? They are not drugs, right?” Pompeo said.
“But if they wanted to, they could stop it,” the Secretary of State added, “In certain cases, you have to wonder, is this intentional? Are they flooding us with it?… When you look at it… you do have to wonder… I’ll just leave it at that.”
Pompeo further revealed that China has conditioned cooperation on fentanyl regulation on the US removing tariffs. “They said, if you don’t impose tariffs, or take other actions, we will help you solve this problem…”