Pro-Trump senator meets China's economy tsar amid trade tensions

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Daines to meet Premier Li Qiang on Sunday

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Reiterates US demand China do more to stop fentanyl flows

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Daines says to also discuss US trade deficit with China

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China is open to dialogue based on 'mutual respect', He says

(Adds He comment in paragraphs 14-18)

By Ryan Woo

BEIJING, March 22 (Reuters) - U.S. Senator Steve Daines, a strong supporter of President Donald Trump, met with China's economy tsar, Vice Premier He Lifeng, on Saturday, marking the first visit by a U.S. politician to Beijing since Trump returned to the White House.

Striking a cordial tone at the start of their meeting at the Great Hall of the People, the Chinese vice premier joked that the Montana Republican looked younger and more handsome than on television, according to a pool report.

Relations between China and the United States have come under new strain after Trump slapped additional tariffs on Chinese goods, accusing Beijing of not doing enough to stem the flow of fentanyl into the United States. In early April, Trump is expected to unleash a round of tariffs on all countries that tax U.S. imports, potentially including China.

In a nod to China's importance as a vast consumer market, Daines said China has become the second-largest source of business for Proctor & Gamble, a former employer of his when he lived in the southern Chinese city of Guangzhou over three decades ago.

"I've many old friends here in China," Daines told He.

"On this visit of course, we're at a time when we have important issues to discuss between our two countries. I've always believed in having constructive dialogue and that has been the nature of all my visits to China over the course of many years."

Daines was to meet with Premier Li Qiang on Sunday, coinciding with the start of the annual China Development Forum in Beijing that is expected to be attended by dozens of foreign executives, including representatives from U.S. companies.

Daines last met with Premier Li seven years ago, he told He.

"We are looking forward to the visit tomorrow with Premier Li Qiang, who I had a chance to meet back in May of 2018 when he was party secretary of Shanghai," Daines said.

DAINES TO TALK ABOUT FENTANYL, TRADE DEFICIT

Ahead of his visit, Daines told The Faulkner Focus on Fox News he would be talking with Chinese leaders about "what they can do" on fentanyl.

"They can do a whole lot more to shut down the flow of these chemicals that go to Mexico and then fentanyl comes in the United States," Daines said on the show.

Daines also said he was planning to talk about the trade deficit the United States has with China, and what can be done to change "trade practices".

China is willing to conduct "candid" dialogue with the United States but on the basis of "mutual respect", state-run Xinhua news agency cited He as saying after his meeting with Daines.

"China and the United States have extensive common interests and broad space for cooperation," He told Daines, according to Xinhua.

"They can become partners and friends, achieve mutual success and common prosperity, benefit both countries and the world."

The U.S. embassy in China said Daines had reiterated Trump's demand that China stem the flow of fentanyl precursors into the United States.

"The Senator voiced President Trump's ongoing call for China to stop the flow of fentanyl precursors from China and expressed hope that further high level talks between the United States and China will take place in the near future," the embassy said in a post on X.

(Reporting by Ryan Woo; Editing by William Mallard, Tom Hogue and Emelia Sithole-Matarise)