The trade war between the US and China has temporarily paused, but negotiations on fentanyl control remain deadlocked.

Four U.S. officials revealed to Reuters that during the tariff war between the two major economies, the U.S. will not compromise on fentanyl drug negotiations. According to an exclusive report by Reuters, the U.S. and China continue to negotiate the issue of fentanyl causing public abuse in the U.S. U.S. negotiating representatives claim that China has consistently failed to address the problem honestly. Both sides are exchanging information on drug trafficking and communicating frequently, but insiders say that the help offered by Beijing so far has been insufficient, testing Trump’s patience. Compared to the Biden administration, Trump is likely to take a stronger confrontational stance against China regarding the fentanyl issue. As China continues to play a waiting game, Trump may still impose further sanctions on China through tariffs or other means.

A Chinese spokesperson stated that Americans are abusing fentanyl themselves.

Chinese manufacturers and exporters provide precursor chemicals used by drug trafficking organizations to produce synthetic opioids. Fentanyl made from synthetic opioids has led to nearly 450,000 deaths in the United States due to overdose. Liu Pengyu, a spokesperson for the Chinese embassy in Washington, told Reuters that the issue of fentanyl abuse in the United States is a problem that the U.S. must face and resolve on its own. China has long been cracking down on smuggling and strictly prohibiting drugs, and the U.S. should handle the addiction issues of its own citizens.

Negotiations between Trump and China have reached a stalemate, with the next step possibly punishing Chinese banks?

Four U.S. officials told Reuters that in recent weeks, the Trump administration has engaged in direct talks with China, primarily involving discussions between senior officials at the Chinese embassy in Washington and the U.S. National Security Council, with staff from the U.S. embassy in Beijing also participating.

U.S. officials stated that Trump's negotiating representatives have expressed their hope that Chinese authorities will take swift action to prosecute and convict those involved in the production and sale of fentanyl precursor chemicals in China. However, China has proposed that in addition to controlling fentanyl precursor chemicals, it will also regulate other synthetic chemicals, and it avoided answering questions regarding immediate enforcement actions against fentanyl traffickers. U.S. officials described this round of negotiations as cheap and stated that both sides are essentially at an impasse.

In response to a question from Reuters regarding drug prohibition negotiations, a government official stated that the United States may consider taking additional punitive measures to compel China to take more meaningful action against fentanyl, including the possibility of imposing sanctions on Chinese banks. The official indicated that nothing is impossible.

Undercover reporters purchased fentanyl precursor compounds from Chinese sellers.

Reuters reporters have been investigating the global supply chain of fentanyl since last year, obtaining 6.6 kilograms of fentanyl precursors and manufacturing equipment from Chinese black market sellers as part of the "Fentanyl Express" series. The reporters detailed the U.S.-China drug enforcement negotiations conducted during the Biden administration, which consistently failed to secure significant concessions from Beijing, with the Trump administration taking a more confrontational policy approach.

Trump is currently imposing tariffs of up to 20% on Chinese imports to penalize Beijing for failing to prevent fentanyl precursors from falling into the hands of drug trafficking groups. China has warned that this move will undermine the drug control negotiations between the U.S. and China, leading both sides into a deadlock. It is highly likely that Trump will come up with new measures to address China's indifference to the fentanyl issue, further impacting the international financial market.

This article discusses the temporary halt in the U.S.-China tariff sanction war, while negotiations on fentanyl drug prohibition remain deadlocked, first appearing in Chain News ABMedia.