Trump ally visits Beijing to pave way for Xi summit

The US and China have stepped up diplomatic efforts as a key US senator met China’s premier to lay the groundwork for an in-person summit between the President and Xi Jinping.

Steve Daines (centre R) leads a delegation of US company CEOs to a meeting with Chinese Premier Li Qiang in the Fujian Room at the Great Hall of the People in Beijing. Picture; AFP.

The US and China stepped up diplomatic efforts as a visiting Republican senator met China’s premier and said he was laying the groundwork for an in-person summit between President Trump and Chinese leader Xi Jinping.

“This was the first step to an important next step, which will be a meeting between President Xi and President Trump,” Sen. Steve Daines, an ally of the president, said in an interview after meeting Premier Li Qiang on Sunday. “When that occurs and where it occurs is to be determined.”

The Trump administration has said it is using tariffs to force Beijing to take more aggressive steps to address its role in the US fentanyl crisis. In recent weeks, Chinese officials have gone on the offensive against the US over the issue, alleging that Washington was using it as a pretext to attack China’s economy.

The meeting between the senator and China’s premier came as dozens of global executives convened in Beijing for an annual forum focused on China’s development. Against the backdrop of US-China frictions, Chinese officials sought to present their country as a force for global stability and open trade, courting business leaders as allies.

In that light, Daines is a potentially useful interlocutor for China. He previously lived in China for several years while working for Procter & Gamble, a part of his background that he specifically raised with Li when they met on Sunday, according to a transcript of his remarks.

Daines said in the interview that he conveyed Trump’s concerns over China’s role in the fentanyl crisis and that the meeting with Li was productive.

Chinese companies make many of the chemicals used in the production of fentanyl. The chemicals are sold to cartels in Mexico, which then make the drug and transport it over the border to the US

“I felt good as we wrapped up the conversation today that they understood clearly how seriously we view this issue,” Daines said.

Daines said he didn’t know when the Trump-Xi meeting would take place. The Wall Street Journal previously reported that US and Chinese officials had begun discussions about a potential June summit.

China’s Foreign Ministry and the White House didn’t immediately respond to requests for comment. In a summary of the meeting, the Foreign Ministry said Li told Daines that trade wars have no winners and that expanding co-operation was the best way for the countries to deal with issues such as trade imbalances.

China is considering curbing exports to the US of certain goods to ease criticism from Washington about its trade surplus, according to advisers to the Chinese government, The Wall Street Journal reported Saturday. The Trump administration has slapped 20% tariffs on Chinese goods while China has responded with more narrowly tailored tariffs against the US to avoid escalating tensions.

Earlier on Sunday, in a speech to the annual China Development Forum attended by business leaders including Apple’s Tim Cook and Blackstone’s Steve Schwarzman, China’s premier warned of growing fragmentation and uncertainty in the global economy, urging companies to jointly fight against such risks.

“If the world goes back to the law of the jungle, where the strong prey on the weak, it would be a regression of history and a tragedy for humanity,” Li said. “We are not opposed to competition, but we advocate for fair competition based on internationally accepted rules, not zero-sum games, and certainly not a vicious cycle of suppressing other countries.” Li didn’t mention Trump in his speech. But he sent a message that China remains calm and open for business, said Wang Huiyao, president of the Center for China and Globalization, a Beijing think tank.

“China is sending a stabilising signal that, ‘Don’t worry, China is here,’” Wang said. “‘We are doing our best to safeguard the multilateral trading system.’” China’s critics argue that a flood of cheap Chinese exports onto global markets has exacerbated challenges in the global trading system and that China’s increasing tempo of military activity around Taiwan, its support of Russia and many other issues have undermined global stability.

At the same time, foreign business sentiment in China has suffered as many international companies face market-access barriers and intensifying competition from local rivals. China’s broadening use of national-security regulations has also raised the risks for foreign business in China.

Chinese officials have moved cautiously in considering negotiations with the US, in part because they are still trying to understand what exactly the Trump administration wants from China on fentanyl and other issues. Some Chinese attendees at this year’s forum said Beijing should engage in negotiations with Trump to avoid tariffs climbing even higher.

One risk for the US is that as Trump challenges both China and Europe, he could end up driving them closer together. European executives were warmly welcomed at this year’s forum, with some incorporating Chinese political jargon into their presentations.

“One thing is clear: China is driving economic progress and growth, and now more recently also through ‘new productive forces,’” said Oliver Zipse, chairman of BMW’s management board, using a Chinese government slogan that broadly refers to boosting homegrown innovation. “Some doors might close in global trade, but other opportunities are opening up.” Dow Jones