• The Chinese Embassy warns of a potential trade war fallout following President-elect Donald Trump's threat to impose additional tariffs on Chinese imports.
• Trump's proposed tariffs aim to halt the flow of illegal drugs, particularly fentanyl, into the United States.
• Liu Pengyu, the embassy's spokesperson, refutes the notion that China knowingly allows fentanyl precursors into the U.S., highlighting China's efforts to combat drug trafficking.
• The statement underscores the importance of cooperation in international trade relations and the ongoing efforts by both nations to combat the illicit drug trade.

In a recent development, the Chinese Embassy in Washington has issued a stern warning about the potential fallout of a trade war. The statement comes in the wake of President-elect Donald Trump's threat to impose an additional 10% tariff on all Chinese imports when he assumes office on January 20th. The embassy's spokesperson, Liu Pengyu, underscored the mutual benefits of China -US economic and trade cooperation, stating, No one will win a trade war or a tariff war.

Trump's proposed tariffs are part of his broader strategy to halt the flow of illegal drugs, particularly fentanyl, into the United States. The abuse of fentanyl has been a significant cause of death in the United States, prompting the government to push for stricter law enforcement measures, including tackling illicit finance and imposing further controls on the chemicals used in the drug's production.

Trade War and Drug Trafficking

In response to these concerns, Liu pointed out that China has already taken significant steps to combat drug trafficking. This follows an agreement reached last year between President Joe Biden and Chinese President Xi Jinping. The Chinese side has notified the US side of the progress made in US-related law enforcement operations against narcotics, Liu said.

Liu further refuted the notion that China knowingly allows fentanyl precursors to flow into the United States. All these prove that the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality, Liu stated.

Progress in Joint Efforts

There has been visible progress in cooperation between the two nations in shutting down illicit traffic in chemicals used to produce deadly fentanyl. This follows the agreement between Xi and Biden to resume joint efforts last year. In June, China's top prosecutor urged law enforcement officials to focus on combating drug trafficking. This coincided with the unveiling of a rare joint investigation into drugs by Beijing and Washington.

In August, following a meeting of a joint counternarcotics working group, China announced it would tighten controls on three chemicals essential for making fentanyl. This move is seen as a significant step towards curbing the production and distribution of the deadly drug.

Historical Precedents and Future Implications

Historically, trade wars have often resulted in negative outcomes for all parties involved. For instance, the Smoot-Hawley Tariff Act of 1930, which raised U.S. tariffs on over 20,000 imported goods, is widely believed to have exacerbated the Great Depression. Similarly, the ongoing trade war between the U.S. and China, which began in 2018, has had adverse effects on both economies and has disrupted global trade patterns.