May 2nd, 2025
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Amidst escalating tariff disputes with the United States, China named a new chief international trade negotiator on Wednesday.
The government announced the appointment of Li Chenggang as the successor to Wang Shouwen, who was involved in the trade negotiations for the 2020 trade agreement between China and the U.S.
The world's two largest economies have incrementally escalated tariffs on one another's exports since the U.S. imposed levies on numerous nations; China's exports to the U.S. are now subject to a 145% tax, whereas other countries received a ninety-day exemption for most duties.
Earlier on Wednesday, China revealed its economy grew at a 5.4% annual rate in January-March, bolstered by robust exports, although analysts anticipate a marked deceleration in the world's second largest economy over the next few months as tariffs on U.S. imports from China are implemented.
Exports constituted a significant driver of China's five percent annual growth rate in 2024, and the official objective for this year is still around five percent.
Beijing has retaliated against the U.S., imposing duties of 125% on American goods, while simultaneously emphasizing its unwavering commitment to maintaining open markets for trade and investment.
According to Sheng Laiyun, a spokesperson for the National Bureau of Statistics, the tariffs are expected to exert immediate pressure on the Chinese economy, yet they are unlikely to impede sustained long-term growth.
It wasn't clear why China changed negotiators, but this change happens as Chinese officials say the country has many ways to respond to the U.S. actions. These include depending more on its large market of 1.4 billion people and working more with Europe and countries in the global south. However, because China's own spending is still weak, it will be hard to replace what U.S. consumers buy.
China further restricted rare earth exports, encompassing materials integral to high-tech goods, aerospace production, and the defense industry.
Before assuming his current role, Li served for approximately four and a half years as China's ambassador to the World Trade Organization, the international body overseeing global trade, to which Beijing has lodged appeals regarding its tariff disagreement with the United States.
He also served as the deputy permanent representative for the Chinese delegation at the United Nations office in Geneva and other international organizations situated in Switzerland.
He has also held roles as an assistant minister at the Ministry of Commerce and as 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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