US President
Donald Trump and Chinese leader
Xi Jinping are set to discuss a proposed trade framework on Thursday that could see Washington reduce tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals, according to The Wall Street Journal.
As per The Wall Street Journal report cited by news agency Reuters, the plan under discussion would involve the US rolling back a portion of its 20% fentanyl-related tariffs on Chinese exports by up to 10% if China pledges stricter controls on precursor chemicals used to produce fentanyl, a synthetic opioid blamed for hundreds of thousands of overdose deaths in recent years.
The meeting between Trump and Xi is expected to take place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, marking their first in-person engagement since Trump’s return to the White House in January.
Earlier, Trump told reporters before departing on his Asia visit that “we have a lot to talk about with President Xi, and he has a lot to talk about with us… I think we’ll have a good meeting.”
Trade tensions between Washington and Beijing have escalated in recent months, with Trump threatening new 100% tariffs on Chinese goods from November 1 after Beijing tightened export controls on rare earths — minerals crucial for smartphones and defence equipment.
China has justified the restrictions as measures to protect “national security.”
Trump has repeatedly pressed Beijing to curb the flow of fentanyl into the United States, while also seeking trade concessions that could help American farmers. “I think we have a really good chance of making a very comprehensive deal,” he said earlier, noting that soy trade and Chinese purchases of Russian oil could also be discussed.
China’s top trade negotiator Li Chenggang recently said both sides had reached “a preliminary consensus on a range of issues.”
Markets are watching the meeting closely amid hopes it could help resolve the ongoing trade war that has rattled the global economy.
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