"China Expected to Demand Removal of Fentanyl Tariffs
and Easing of Technology Export Controls"
The Wall Street Journal (WSJ) reported on August 26 that China's top trade official is scheduled to visit the United States this week to coincide with the resumption of U.S.-China trade negotiations.
According to sources, Li Chenggang, China's Ministry of Commerce International Trade Negotiation Representative (ministerial level) and Vice Minister, is expected to meet with Jamieson Greer, the U.S. Trade Representative (USTR), as well as senior officials from the U.S. Department of the Treasury in Washington, D.C., this week. He will also hold meetings with members of the U.S. business community.
Li Chenggang, China's Ministry of Commerce International Trade Negotiation Representative (ministerial level) and Vice Minister. Photo by AFP Yonhap News
Li, who previously served as China's ambassador to the World Trade Organization (WTO), is recognized as an "economic heavyweight" in China and has participated in three rounds of U.S.-China trade talks this year alongside He Lifeng, Vice Premier of the State Council and head of the Chinese negotiating delegation.
This resumption of negotiations comes as both countries seek to formalize dialogue, having agreed to postpone tariff increases until early November. It is expected to be the first round of U.S.-China trade talks held in the U.S. capital since the start of the Trump administration.
WSJ stated that Li is likely to discuss the issue of purchasing U.S. soybeans during this round of negotiations. Although China is the world's largest importer of soybeans, it has recently significantly reduced its proportion of imports from the United States. On August 11, President Trump commented on the social media platform Truth Social, "China is concerned about a shortage of soybeans. Our great farmers produce the highest quality soybeans," and added, "I hope China will quickly quadruple its soybean orders."
However, China has not responded to this request and, according to WSJ, has not made any purchases of the upcoming harvest shipments scheduled to begin in September.
On August 21, Bloomberg reported that U.S. aircraft manufacturer Boeing is on the verge of signing a contract to sell 500 aircraft to China.
Sources say that before making concrete commitments such as purchasing soybeans or Boeing aircraft, China is demanding the removal of the 20% tariffs imposed by the Trump administration on the grounds of fentanyl proliferation. However, according to WSJ, China has yet to present measures to curb the illicit trade of fentanyl precursors that the Trump administration would consider sufficient.
Li is also expected to urge the U.S. government to ease export controls on technology to China. However, no meetings have been scheduled with the Department of Commerce, which is responsible for export controls.
Tensions remain high as the U.S. government plans to restrict imports of steel, copper, lithium, and other materials suspected of being produced with forced labor in China's Xinjiang Uyghur region.
Sean Stein, President of the U.S.-China Business Council, stated, "There is an opportunity for both sides to make progress on key issues, ranging from tariffs and export controls to broader matters."
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