President Trump’s escalating trade disputes with Canada, Mexico, and China involve fentanyl production and importation, trade imbalances, and illegal immigration.
Here’s Beijing’s perspective:
China’s Response
China has threatened “necessary countermeasures” in response to Trump’s 10% tariffs, levied due to China’s perceived insufficient efforts to curb fentanyl precursor chemical production.
Sunday’s Foreign Ministry statement, while not specifying retaliatory actions, urged the U.S. to rectify its actions, preserve positive counternarcotics cooperation, and foster stable U.S.-China relations.
China argues the U.S. action violates World Trade Organization rules and plans to file a complaint.
The Ministry of Public Security and the Commerce Ministry issued similar statements.
Attribution of Blame
Trump blames China for enabling fentanyl production, its subsequent processing in Mexico, and its smuggling into the U.S., contributing to roughly 70,000 overdose deaths annually.
China counters that the U.S. should address its own issues rather than resorting to “arbitrary tariff hikes,” advocating for an objective approach to the fentanyl problem. China asserts its stringent counternarcotics policies and enforcement.
Experts note China’s executions of drug smugglers, despite relatively low domestic drug use.
The Ministry of Public Security highlighted the U.S.’s lack of reported fentanyl precursor seizures from China since Beijing’s legal actions.
Contributing Factors
China’s substantial trade surplus with the U.S. (nearly $1 trillion in 2024) has been a recurring point of contention for Trump. Tariffs would increase prices for U.S. consumers of Chinese goods.
China’s vital export market could suffer if U.S. consumers shift to domestic products. The Chinese economy’s sluggish response to government stimuli, coupled with high public debt from infrastructure projects, threatens further economic stagnation.
This undermines President Xi Jinping’s economic and political ambitions, including his aim to surpass the U.S. and potentially assert control over Taiwan.
Curbing illegal immigration, a key Trump policy, is also a factor in tariffs imposed on Mexico and Canada. While illegal immigration from China is relatively low, Trump has signaled accountability for all countries regarding their nationals entering the U.S. illegally.