Disappointed by the inability of Beijing to counter the production and traffic of precursors of the Fenanylthe American administration led by Donald Trump has issued an executive order that affects China. The measure highlights the role of China in facilitating the supplies of synthetic opioids and introduces new commercial measures to push Beijing to take more incisive actions. There China as he reacted hard. A spokesman for the Ministry of Foreign Affairs warned that “the decision could compromise future cooperation”. The provision is part of a wider government strategy which provides for a detailed examination of economic practices not conforming to the free market adopted by China. The conclusions of this analysis could serve as a basis for new tariff increases, underlining the determination of Washington in counteracting Beijing’s policies in the commercial and security fields.
The new executive decree introduces a universal tax of 10% on goods imported from China as a response to the proven failure of Beijing in limiting the influx of precursor chemicals – fundamental elements for the production of Fenanyl and others Synthetic opioids – to the drug signs operating in the western hemisphere. These new duties will add to those already in force introduced during the first term of Trump and largely confirmed by the former president Joe Biden. The measure also aims to hinder China in the imposition of retaliation rates, authorizing the application of higher customs rates. The proposed rates are part of a series of recent initiatives by the Trump Administration aimed at counteracting illegal drug trafficking. Among these, the classification of Mexican drug signs such as foreign terrorist organizations, the proclamation of a national emergency state on the southern border and the intention of applying duties to both Mexico and Canada, deemed unable to stop the flow of Fenanyl towards the United States.
The role of China in the Fentanyl crisis in the United States
China exerts dominance on global chemical industry being the main producer of the Precursors of Fenanyl, substances that contribute to the opioid crisis in the United States. Chinese chemical companies connected to the state have been recognized as fundamental suppliers for international criminal networks, including the Sinaloa cartel, Taking advantage of an unwary regulation to export large quantities of illegal chemicals in the Americas intended for the trafficking of Fentanyl. Parallel, Chinese clandestine banking circuits and currency exchange operations have recycled billions of dollars deriving from the proceeds of Fenanyl, further consolidating the role of Beijing in this crisis. In 2023 the United States designated China as an important country of transit or drug production, targeting Chinese traffickers and of Hong Kong And by incriminating several Chinese chemical companies. In 2024, Washington And Beijing They set up an antinarcotic working group to counter synthetic drug trafficking. However, the flows of Fenanyl from China have continued, fueling the concerns that Beijing is using the group most to appease the American administration and deviate criticisms, rather than taking significant actions. Shortly after the entry into force of the new rates imposed by the United States, the Ministry of Finance Chinese replied with targeted retaliation measures on US exports of energy and raw materials. Among these, a 15% duty on products derived from coal and liquefied natural gas, as well as a 10% tax on crude oil, although none of these categories represents a significant share of US exports to China. In addition, the Ministry of Finance has introduced a 10% rate on large -scale agricultural machines and vehicles. The latter measure could represent an obstacle for US car manufacturers, making their expansion even more difficult in a highly competitive Chinese market.
The numbers of Chinese exports in the United States
The imposition of rates on these and other exports, through an executive order, represents a direct threat to the Chinese economy, highlighting the vulnerability that Beijing could have difficulties in facing. For decades, the United States represented the main destination for Chinese exports, importing more products from China than any other country in the world. In 2023 the overall value of Chinese exports touched the 3.4 trillions of dollars, of which 502 billion dollars (equal to 14.8%) intended for the United States. This percentage has far exceeded that of Hong Kong, the second main importer, who absorbed 8.2% of Chinese exports. The consumer electronics sector is that in which dependence on China of the US market is greater, representing 22% of its exports. Among all the sectors is also the one with the minor difference between sales to the United States and those to other countries: extra-US exports (339 billion dollars) are only 3.5 times higher than those directed to the United States ( 96 billion dollars). Despite commercial tensions, China continues to maintain significant export relations with the United States in traditional manufacturing sectors. In particular, household appliances (19%), textile products (17%) and optical/doctors (17%) tools retain a significant market share in the USA.
In December 2024 Chinese exports to the United States reached 48.83 billion dollars, recording an increase compared to the 47.31 billion dollars in November 2024. This growth is probably due to the racing of the companies to send the goods before the ‘entry into force of the expected duties, which should involve an exponential increase in costs. According to analysts of the Foundation for Defense of Democracies (FDD) «The Trump Administration should take advantage of this pressure to put an end to the granting of the production of precursors by China, request the classification of chemicals related to Fentanyl as controlled substances and request that China dismantles the national trafficking networks of drug. Together with these efforts, the administration should also instruct the Department of the Treasury to aggressively sanction individuals and entities connected to the Chinese clandestine banking system, exerting greater pressure on illegal financial flows connected to drug trafficking. These efforts should be combined with the raising awareness of the allies and partners of the United States, in particular Canada And Mexicoto establish more severe financial regulations to combat recycling of international money “
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