China has appointed Li Chenggang as its new top international trade negotiator, replacing Wang Shouwen, as tensions with the United States over tariffs intensify, the government announced on Wednesday.

Li, 58, steps into the role at the Ministry of Commerce (Mofcom) as the world’s two largest economies engage in a tit-for-tat tariff war, with the U.S. imposing 145% taxes on Chinese exports and China retaliating with 125% tariffs on American goods.

Li, a seasoned diplomat with over a decade at Mofcom, served as China’s ambassador to the World Trade Organization (WTO) from 2021, advocating Beijing’s stance in global trade disputes.

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He holds a law degree from Peking University and a master’s in economics of law from the University of Hamburg. Analysts, including Alfredo Montufar-Helu from The Conference Board, suggest Li’s appointment may signal Beijing’s intent to break the deadlock in stalled U.S. trade talks, particularly after Trump’s aggressive tariff hikes post-inauguration.

China’s economy grew 5.4% annually in January-March 2025, driven by robust exports, but analysts predict a slowdown as U.S. tariffs bite. Despite short-term pressure, National Bureau of Statistics spokesperson Sheng Laiyun insists long-term growth remains intact, with China leaning on its 1.4 billion-strong domestic market and trade with Europe and the global south. However, weak domestic consumption poses challenges.

Beijing has also tightened export controls on rare earths, critical for high-tech and defense industries, signaling a strategic response. The White House, via Press Secretary Karoline Leavitt, stated Trump is open to a deal but expects China to initiate talks. Li’s extensive WTO experience positions him to navigate this high-stakes economic standoff.

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