China announces restrictions on chemicals after deal with Trump on fentanyl tariffs

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WASHINGTON (AP) — China said Monday it is making good on its pledge to crack down on chemicals that can be used to make fentanyl, a key issue for President Donald Trump during recent talks with Chinese leader Xi Jinping as they aimed to take steps to ease a trade war.

Beijing announced new export restrictions on 13 “drug-making” chemicals to the United States, Canada and Mexico, including those that are used to produce the synthetic opioid blamed for tens of thousands of overdose deaths in the U.S. every year. After meeting Xi in South Korea last month, Trump said China would help end the fentanyl crisis and he would ease a related tariff from 20% to 10%.

It shows the back-and-forth nature of U.S.-Chinese cooperation on fentanyl over the years and lessens the recent tensions after Trump launched his campaign of tariffs, including those against the country that is the top exporter of pharmaceutical ingredients, such as the chemicals used to make fentanyl.

“What the Trump administration has essentially agreed with Beijing is for Beijing to restart what it had been doing during the second part of 2024," before Trump returned to the White House, said Vanda Felbab-Brown, a senior fellow focusing on the opioid crisis at the Brookings Institution.

Asked for the White House's response to the Chinese export restrictions and whether the deal essentially resumes the cooperation from China that was disrupted by Trump's tariffs, deputy press secretary Anna Kelly said the president “has taken every possible action to stop the flow of illicit narcotics into our country, from securing the border to striking drug boats to curbing fentanyl precursors.”

Cooperation on fentanyl has long been a sticking point in relations between Beijing and Washington.

In 2019, during Trump's first term, Beijing took a huge step by restricting fentanyl and related substances at the request of the U.S. president. When tensions rose between Beijing and Washington over human rights issues, China started to stall counternarcotics cooperation in 2020 before making it formal two years later.

The U.S. in 2023 listed China as a “major illicit drug-producing country" before then-President Joe Biden met Xi in California to secure Beijing's agreement to cooperate.

Shortly afterward, Beijing restricted more substances, including another synthetic opioid and chemicals that are added to fentanyl. Other key fentanyl precursors were curtailed in September 2024.

After Trump took office, he slapped two 10% tariffs on China, accusing it of failing to stem the flow of chemicals. Beijing responded with its own tariffs and pausing cooperation on fentanyl.

“The Trump administration made the big error in completely discounting and ignoring what China was doing with the U.S. in 2024 and just coming in with guns blazing” on tariffs, Felbab-Brown said.

That, she said, has allowed Beijing to bargain to resume measures that were already on the table in the second half of 2024 and “get double points."

Also on Monday, Beijing took another step aimed at addressing U.S. concerns, signaling tougher enforcement with a public notice by the China National Narcotics Control Commission urging businesses to comply with tax codes, customs rules, internet laws and foreign currency regulations.

The chemicals newly restricted by Beijing can still be exported without a license to other countries besides the three in North America that were named in the Chinese Commerce Ministry announcement. Fentanyl is mostly manufactured in Mexico.

The challenge remains that the “very basic chemicals” with widespread, legitimate uses in chemistry, agriculture and the pharmaceutical industry are increasingly tapped to make synthetic opioids, Felbab-Brown said.

In September, Trump continued to list China as a “major illicit drug-producing country."

“For too long, (China) has enabled illicit fentanyl production in Mexico and elsewhere by subsidizing the export of the precursor chemicals needed to produce these deadly drugs and failing to prevent Chinese companies from selling these precursors to known criminal cartels,” the presidential statement said.