BEIJING (AP) — China’s Premier Li Qiang said Sunday that Beijing and Washington should choose dialogue instead of confrontation, as the two countries are locked in rising friction over trade tariffs and efforts to combat illegal fentanyl trade.

Li was speaking during a meeting with U.S. Senator Steve Daines, a strong supporter of President Donald Trump, who is the first member of Congress to visit Beijing since Trump took office in January. The meeting also involved the leaders of several American businesses, including FedEx Corp. CEO Raj Subramaniam, Boeing Co.’s senior vice president Brendan Nelson, Qualcomm’s CEO Cristiano Amon and Pfizer’s CEO Albert Bourla.

Chinese Premier Li Qiang, right, meets U.S. Senator Steve Daines in the Fujian Room at the Great Hall of the People in Beijing, China, Sunday, March 23, 2025. (AP Photo/Ng Han Guan, Pool)

Li said relations between the countries “have come to an important juncture” and Chinese President Xi Jinping noted the two countries could become partners and friends that contribute to each other’s success during a call with Trump in January.

“Our two sides need to choose dialogue over confrontation, win-win cooperation over zero-sum competition,” he said.

China hoped that the U.S. would work together to promote the steady and sustainable development of the China-U.S. relations, he added.

China’s official Xinhua news agency reported Li also said there’s no winner in a trade war. He said China welcomes foreign companies, including those from the U.S., to share development opportunities in the country. It will work to resolve reasonable demands of businesses and treat domestic and foreign firms equally, the report quoted him saying.

During the first Trump administration, Daines served as a go-between when tariffs were also a major issue. Ahead of the trip to China, his office said he is coordinating closely with the White House and will be “carrying President Trump’s America First agenda.”

Since he arrived in the Chinese capital on Thursday, he has talked with Chinese Vice Premier He Lifeng to voice Trump’s ongoing call for Beijing to stop the flow of fentanyl precursors from China. Additionally, he met with Vice Foreign Minister Ma Zhaoxu.

Just months into Trump’s second term, relations between the world’s two largest economies have deteriorated. Washington slapped 20% tariffs on Chinese imports, with Beijing hitting back with 15% duties on U.S. farm goods.

Trump is planning to impose “reciprocal” tariffs by increasing U.S. duties to match the tax rates that other countries charge on imports “for purposes of fairness.” These reciprocal tariffs are expected to be announced on April 2.

Earlier Sunday, Li said at the China Development Forum that his country may see unexpected shocks, mainly from external factors. He said the government, when necessary, will introduce new policies to ensure the local economy runs smoothly. The forum is a government-sponsored event that invites senior officials and business leaders, including top executives from outside China.

Facing rising economic fragmentation and instability, Li said it has become even more crucial for every country to open up its markets, calling for entrepreneurs to help maintain economic globalization proactively.

“We are not against competition, but we should advocate for fair competition under internationally recognized rules, rather than zero-sum games or deliberate suppression of vicious competition by other countries,” he said.

The U.S. has also criticized China for not doing enough to stop the export of precursor materials for fentanyl, a highly potent opiate blamed for tens of thousands of deaths in the U.S.

Beijing responded with a report detailing its efforts to control the illegal trade in fentanyl, specifically the ingredients for the opioid that are made in China. The report said China is committed to cooperation but opposes the U.S. imposition of unreasonable pressure on China on the pretext of responding to fentanyl-related issues.

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