The world's two dominant economies have progressively heightened import duties on each other's products, a trend initiated when the U.S. imposed tariffs on numerous nations. China now confronts a significant 145% levy on exports to the U.S., while most other countries were granted a ninety-day suspension from the majority of these duties.

Earlier on Wednesday, China disclosed that its economy grew at an annual rate of 5.4% during the January-March period, bolstered by vigorous exports, although analysts anticipate a notable deceleration in the coming months as tariffs on US imports from China are implemented.

Exports played a significant role in China's 5% annual growth rate in 2024, and the official objective for this year remains around 5%.

Beijing has retaliated against the U.S. by imposing a 125% tariff on American exports, concurrently affirming its commitment to maintaining open markets for trade and investment.

While these tariffs will exert immediate pressure on China's economy, they are unlikely to impede its long-term expansion, according to Sheng Laiyun, a spokesperson for the National Bureau of Statistics.

The rationale behind China's shift in negotiators remained ambiguous, a change coinciding with assertions from Chinese officials that the nation possesses a diverse array of retaliatory measures against U.S. actions. These options include a greater reliance on its expansive domestic market of 1.4 billion consumers, as well as enhanced engagement with Europe and nations in the global south. However, given the persistent sluggishness in China's domestic consumption, substituting the U.S. consumer base will prove challenging.

Furthermore, China implemented stricter controls on the exportation of rare earth elements, which are integral components in high-tech commodities, aerospace production, and the defense industry.

Before getting his new job, Li worked for about four and a half years as China's ambassador to the World Trade Organization. This is the group that controls trade around the world, and Beijing has complained to them about its tax disagreement with the U.S.

He also served as the deputy permanent representative for the Chinese delegation at the United Nations office in Geneva and other international bodies based in Switzerland.

He has also held positions as an assistant minister at the Ministry of Commerce and as the director-general overseeing 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 law and economics from the University of Hamburg.