Beijing [China]: Amid ongoing trade friction with the United States, China has appointed Li Chenggang as its new International Trade Representative and Vice Minister of Commerce, replacing Wang Shouwen, according to a statement from the State Council of China on Wednesday.
Li brings extensive experience in global economic diplomacy. On December 26, 2020, he was appointed as Permanent Representative and Ambassador to the World Trade Organization (WTO) and Deputy Permanent Representative to the UN Office at Geneva (UNOG). Previously, he served as Assistant Minister at the Ministry of Commerce (MOFCOM) from December 2016, and held the role of Director-General of the Department of Treaty and Law in MOFCOM since 2010. He also served briefly as Vice Mayor of Qingdao between February 2013 and February 2014.
This leadership shift comes as China faces escalating trade tensions with the US. In response to tariffs imposed by the US government, China retaliated by raising tariffs on American imports to as high as 245%, according to a White House fact sheet. Prior to the increase, Chinese exports to the US were already subject to tariffs of up to 145%.
The origin of these tensions dates back to former President Donald Trump’s trade policy moves, which introduced 10% baseline tariffs and higher reciprocal tariffs on countries with which the US had significant trade deficits. Trump paused these tariffs temporarily, citing ongoing negotiations:
“More than 75 countries have already reached out to discuss new trade deals,”
the White House fact sheet stated.
“As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated.”
Trump had unveiled a “Fair and Reciprocal Plan” aimed at correcting perceived imbalances in trade, citing the need to protect US national security and restore fairness in global commerce. Since resuming office for a second term, he has reinforced this approach:
“The United States will match tariffs imposed by other countries, including India, to ensure fair trade,”
he reiterated.
Global markets have felt the strain from these ongoing disputes, with sharp sell-offs in equities across Asia, Europe, and even within the US. Investors remain wary of rising inflation and the risk to economic growth triggered by tit-for-tat tariff strategies.