May 2nd, 2025
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Amidst ongoing tariff disputes with the United States, China designated a new chief international trade negotiator on Wednesday.
The government announced that Li Chenggang has been designated to succeed Wang Shouwen, who took part in the trade negotiations for the 2020 trade accord between China and the U.S.
The world's two foremost economies have progressively augmented tariffs on one another's products since the U.S. enacted higher tariffs on various nations, resulting in China encountering a 145% tax burden on exports to the U.S., while other countries received a 90-day exemption for the majority of duties.
Earlier on Wednesday, China reported that its economy grew at an annualised rate of 5.4% in the first quarter, buoyed by robust exports, although analysts anticipate a significant deceleration in growth over the coming months as tariffs on Chinese goods entering the U.S. are implemented.
Exports significantly contributed to China's 5% annual growth rate in 2024, and the official objective for the current year continues to be approximately 5%.
Beijing has retaliated against the U.S. by imposing 125% tariffs on American exports, while simultaneously underlining its unwavering resolve to maintain its own markets as accessible for trade and investment.
The tariffs are expected to exert pressure on China's economy in the short term, yet they are unlikely to impede its sustained long-term growth, according to Sheng Laiyun, a spokesperson for the National Bureau of Statistics, who conveyed this to reporters.
It wasn't clear why China changed who was negotiating, but this change happens as Chinese officials say they have many ways to respond to the U.S. This includes using their own large market of 1.4 billion people more, and working with Europe and countries in the global south. However, because people in China are not buying much, it will be hard to replace American buyers.
China additionally implemented stricter export limitations on rare earths, encompassing materials integral to advanced technology, aerospace production, and the defense domain.
Before taking on his current role, Li served for approximately four and a half years as China's envoy to the World Trade Organization, the entity overseeing worldwide trade, which Beijing has approached regarding its tariff disagreement with the U.S.
He further served as the deputy permanent representative for the Chinese delegation to the UN office in Geneva and other international organizations in Switzerland.
He has also held positions as an assistant minister at the Ministry of Commerce and director-general of the ministry's Department of Treaty and Law.
Li holds a bachelor's degree in law from the prestigious Peking University in China and a master's degree in the economics of law from the University of Hamburg.
May 2nd, 2025
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