Whether it is over TikTok, fentanyl or trade, Beijing might welcome a compromise to buy time to address its ailing economy and bolster its position globally.

After long, fraught negotiations the two sides agreed what became known as the "phase one" trade deal -- a ceasefire in the nearly two-year-old trade war. Under that agreement, Beijing agreed to import $200 billion worth of US goods, including $32 billion in farm products and seafood.

President Donald Trump is considering changing a key U.S. trade benefit to other nations, the "de minimis" exemption on import tariffs, as he accuses China of unfair trade practices and blames it for a crisis over the deadly drug fentanyl.

Chinese officials were prepared for Donald Trump to deliver bad news on his return to the US presidency: immediate 60 per cent tariffs on exports that could deal a serious blow to the world’s second-largest economy.

However, his firms' exposure to China has come under sharp scrutiny. One of his firms, BCG Group, has a Chinese joint venture with state-owned China Credit Trust, while Cantor Fit

US President Donald Trump has said he is considering imposing a 10% tariff on imports of Chinese-made goods as soon as 1 February. Trump said discussions with his administration were "based on the fact that they're sending fentanyl to Mexico and Canada".