China appoints new trade envoy amid escalating US tensions
The Chinese authorities have appointed Li Chenggang as the deputy minister of commerce and chief representative for international trade negotiations. This appointment comes as a result of escalating trade tensions between Beijing and Washington. Li, who has extensive experience in trade matters, replaces Wang Shouwen.
Beijing's decision is reportedly a response to the slow progress of negotiations. According to Alfredo Montufar-Helu, head of the China Centre 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 at the WTO and other international organisations. As Montufar-Helu notes, 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 powers
Since President Trump took office in January, the United States has imposed a total of 145% tariffs on all goods imported from China, including 20% tariffs related to Beijing's alleged role in the fentanyl trade. In response, China has implemented 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 towards 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 practically halt trade of goods between the two largest economies in the world. Kenneth Jarrett, senior adviser at Albright Stonebridge Group, notes that Li will likely play a similar supporting role to his predecessor "if and when talks get off the ground."
