Beijing Installs New Trade Envoy as U.S. Tariff War Deepens
China has named a new trade representative in the midst of escalating tensions with the United States over rising tariffs. Li Chenggang, a seasoned diplomat and former WTO ambassador, will take over from Vice Commerce Minister Wang Shouwen as China’s chief trade negotiator.
The appointment comes as Chinese officials push back against what they call “trade bullying” by the U.S., following President Donald Trump’s decision to raise tariffs on Chinese goods to 145%. In response, Beijing also hiked tariffs on U.S. imports to 125%.
A government spokesperson emphasized that Washington’s trade barriers are damaging the global economy, violating WTO rules, and hindering international recovery efforts.
“We strongly oppose the U.S. use of tariff walls,” said Deputy Commissioner Sheng Laiyun during a press briefing. “These actions disrupt global trade and threaten economic order.”
Li, 58, brings significant experience from past roles in the Commerce Ministry and at the United Nations in Geneva. His appointment has raised eyebrows due to its sudden nature. Some analysts believe the change signals a shift in Beijing’s negotiation strategy, while others say it could simply be a routine reshuffle timed during a tense moment.
Meanwhile, China’s economy grew by 5.4% in the first quarter of 2025—outpacing expectations driven by strong retail performance and factory activity. However, some of the surge is believed to be due to “front loading”—companies rushing exports before the U.S. tariffs took effect.
Despite the promising GDP numbers, challenges remain. Property investment declined by nearly 10%, and home prices stagnated, indicating weak demand in the real estate sector. Officials say they are prepared to roll out new stimulus measures to support growth and counter tariff-related headwinds.
In a recent editorial, state-run China Daily accused the U.S. of being “capricious and destructive,” urging it to stop portraying itself as a trade war victim. The outlet claimed the U.S. has long benefitted from globalization and is now unwilling to compete fairly.
As the economic rivalry between the world’s two largest economies heats up, all eyes are on how Li Chenggang’s leadership will reshape China’s approach to global trade diplomacy.
