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I had this problem while using gunicorn with gevent as the worker class. To resolve and get cloud traces working the solution was to monkey patch grpc like so
from gevent import monkey
monkey.patch_all()
import grpc.experimental.gevent as grpc_gevent
grpc_gevent.init_gevent()
See https://github.com/grpc/grpc/issues/4629#issuecomment-376962677
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