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.

Trump has wielded tariffs as a frequent threat against friends and adversaries, and for the US promised additional revenue from them would help fund his domestic priorities. The US leader threatened on his second day in office to put 10% tariffs on China as soon as Feb. 1 for allowing fentanyl to “pour” into America.

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

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.

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".