The Deadly Drug Complicating US-China Trade

The US–China trade relationship has become increasingly complicated due to the fentanyl crisis, with the Trump administration blaming China for “sustaining” the influx of the deadly opioid into the US. China’s government has pushed back, saying the issue is the “US’s problem” and that Beijing has already done “tremendous work” to address it.

A Chinese foreign ministry spokesperson stated, “We stand ready for practical cooperation with the US based on equality and mutual respect. That said, we firmly oppose the US pressuring, threatening and blackmailing China under the pretext of the fentanyl issue.”

Despite the tensions, China has taken steps to control fentanyl precursors and other synthetic opioids. In late June, China announced it would add two more fentanyl precursors to its list of controlled substances, bringing it in line with international regulations. Chinese Minister of Public Security Wang Xiaohong told US Ambassador to China David Perdue that Beijing was open to strengthening “practical cooperation” on drug control.

In 2019, China controlled fentanyl as a drug class, significantly reducing the flow of the finished drug directly from China to the US. However, Chinese criminal networks adapted by selling precursor chemicals to cartel-backed labs in Mexico, which then made and shipped illegal fentanyl to the US.

China’s latest moves to control additional fentanyl precursors and nitazenes are positive actions that could impact illicit drug supply chains, according to experts. Vanda Felbab-Brown, a senior fellow at the Brookings Institution, described these moves as “clever maneuvering” from China.

The Trump administration’s imposition of tariffs on China has complicated cooperation on the fentanyl issue. Ryan Hass, director of the John L. Thornton China Center at the Brookings Institution, said, “If Washington does not publicly recognize Chinese steps and show responsiveness to Beijing’s own concerns, then bilateral law enforcement cooperation likely will falter going forward.” Felbab-Brown added that a “more effective posture” would have been to acknowledge China’s efforts in 2024 and ask it to fill in the gaps in its drug control program.

Experts agree that US efforts to curb demand are critical for mitigating the opioid crisis. They also note that even if no chemicals came from China, fentanyl makers would look to other countries with large pharmaceuticals and chemicals industries. David Luckey, a senior international and defense researcher at RAND, said, “Scheduling drugs and precursors that lead to the production of illegal drugs is one step of many needed in China.” Luckey suggested that China could do more to prevent companies from selling and distributing harmful chemicals to criminal organizations in Mexico.

The fentanyl crisis is a complex issue that requires cooperation between the US and China. While China has taken steps to control fentanyl precursors and other synthetic opioids, the Trump administration’s tariffs have complicated cooperation.

Experts say that more can be done in China to tighten regulations and enforce existing laws, but they also emphasize the importance of US efforts to curb demand and address the root causes of the opioid crisis. As Yun Sun, director of the China program at the Stimson Center think tank, noted, “The Chinese hope to remove the 20% tariff… (and are) eager to get President Trump to visit China this year, so they need to work out good progress.”