Trump signals optimism for China trade deal and fentanyl talks

On October 23, US President Donald Trump expressed optimism about reaching a trade agreement with China.

The American leader added that he expects to meet soon with Chinese President Xi Jinping — their first encounter since the start of Trump’s second term, Reuters reports, citing sources.

The American president said the first issue he intends to raise with Xi will be the problem of fentanyl.

"The first question I'm going to be asking him about is fentanyl," Trump said, adding that he’s putting it right at the front of the list.

Washington accuses Beijing of failing to curb the flow of precursor chemicals used to manufacture the drug, which has become the main driver of the synthetic narcotics epidemic in the United States.

China, in turn, has praised its progress in drug control and accused the United States of using the fentanyl issue as “blackmail” amid the ongoing trade dispute between the two countries.

The White House has previously cited the influx of Chinese chemicals as one of the reasons for raising tariffs on Chinese goods.

In recent years, relations between the United States and China have been defined by both strategic rivalry and deep economic interdependence. Despite being each other’s largest trading partners, tensions have intensified over issues such as trade imbalances, technology restrictions, human rights, and military posturing in the Indo-Pacific.

Washington accuses Beijing of unfair trade practices and state-backed cyberattacks, while China criticises the US for attempting to contain its rise and interfering in its internal affairs.

On October 10, the US announced plans to impose additional tariffs of up to 100% on Chinese imports starting November 1, in response to Beijing’s expanded export controls on rare-earth elements, magnets, and other strategic materials — a move that further escalates the ongoing tariff conflict.

China, meanwhile, has ramped up its own non-tariff and export controls, further complicating trade flows and raising stakes in the competition. At the same time, a temporary tariff reduction was announced earlier in 2025 — the US and China agreed that, for a limited period, some rates would be reduced.

The two countries continue to engage in cautious dialogue aimed at stabilising ties, yet competition remains the dominant theme of the relationship.

Cooperation in areas such as climate policy, global health, and counter-narcotics has been limited but remains one of the few avenues for constructive engagement. 

By Jeyhun Aghazada