China's new trade envoy Li Chenggang to tackle US tensions
Chinese authorities have appointed Li Chenggang as the deputy minister of commerce and chief representative for international trade negotiations. This nomination comes as a response to escalating trade tensions between Beijing and Washington. Li, who has extensive experience in trade matters, replaces Wang Shouwen.
Beijing's decision aims to address the slow pace of negotiations. According to Alfredo Montufar-Helu, head of the China Center at The Conference Board, "they may need someone else to deescalate tensions." The expert adds that China has made "a very abrupt and potentially disruptive change given how quickly trade tensions have escalated."
Li Chenggang has been working in the Chinese commerce department since 2010 and has represented China in the WTO and other international organizations. As Montufar-Helu points out, Li has the "right track record to take over this new role given his extensive experience on trade issues within the Ministry of Commerce."
Intensification of the trade conflict between superpowers
Since President Trump took office in January, the United States has imposed a total tariff rate of 145% on all goods imported from China, with 20% of that being tariffs related to Beijing's alleged role in the fentanyl trade. In response, China has imposed retaliatory increases reaching 125%.
"The ball is in China's court"
The White House has taken the position that China should make the first move toward an agreement. White House Press Secretary Karoline Leavitt stated on Tuesday that "the ball is in China's court."
" China needs to make a deal with us, we don't have to make a deal with them," she said.
Analysts warn that the current level of tariffs could effectively halt trade in goods between the world's two largest economies. Kenneth Jarrett, a senior advisor at Albright Stonebridge Group, notes that Li will likely play a similar supporting role to his predecessor's, "if and when talks get off the ground."
