Chinese State Media Refutes Trump on Tariffs, Fentanyl

(Bloomberg) -- The latest tariff move by the U.S. has “seriously breached” the truce that Presidents Donald Trump and Xi Jinping agreed in Japan in late June and isn't doing any good to trade talks, according to a People's Daily commentary.

“It deviates from the correct track and is not conducive to solving the problem,” the paper, mouthpiece of the Communist Party said on Saturday. “The Chinese side is strongly dissatisfied and resolutely opposed.”

Trump announced Thursday that he would impose a 10% tariff on a further $300 billion in Chinese imports, a move set to hit American consumers more directly than his other tariffs so far. The new duties will be imposed beginning Sept. 1 on a long list of goods expected to include smart-phones, laptop computers and children's clothing.

“The U.S.'s escalation of trade frictions and tariffs are inconsistent with the interests of the Chinese and American people and the interests of the world and will have a declining impact on the world economy,” according to the commentary. “China is committed to international cooperation, but is not afraid of any extreme pressure.”

In a tweet, Trump said China hadn't lived up to a promise Xi made in Osaka to buy U.S. agricultural goods and to halt illegal exports of fentanyl.

Chinese companies are making inquiries to buy more American farm products, the paper said. The country is willing to strengthen its cooperation with the U.S. on drug control, and is cracking down on illegal production and smuggling of fentanyl, it said.

The U.S. needs to examine why it has an opioid crisis instead of blaming China, according to the commentary.

“China has adopted stricter controls than the U.S.,” Liu Yuejin, deputy head of China National Narcotics Control Commission, said in an interview on state television CCTV. China has strict controls over 25 types of fentanyl-related substances, which is more than what's listed by the United Nations, he said.

“The root cause of the fentanyl issue in the U.S. does not lie with China,” China's foreign ministry spokeswoman Hua Chunying was quoted as saying by the official Xinhua News Agency.

--With assistance from Niu Shuping.

To contact Bloomberg News staff for this story: Gao Yuan in Beijing at ygao199@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Marcus Wright

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