Amid escalating tariff tensions with the United States, China on Wednesday designated a new chief international trade negotiator.

The government announced the appointment of Li Chenggang to succeed Wang Shouwen, who was involved in the trade negotiations for the 2020 trade agreement between China and the U.S.

Since the U.S. started putting higher taxes on goods from many countries, the two biggest economies in the world have been slowly increasing taxes on each other's goods. China's goods sent to the U.S. now have a very high tax of 145%, but most other countries were given a 90-day delay on paying most of these taxes.

Earlier on Wednesday, China reported its economy grew at a 5.4% annual rate from January to March, buoyed by robust exports; however, analysts predict a significant slowdown in the coming months for the world's second-largest economy as US tariffs on Chinese imports are implemented.

Exports significantly contributed to China's 5% annual growth rate in 2024, and the official target for this year is maintained at approximately 5%.

In response to the U.S., Beijing has imposed a 125% tariff on American exports, concurrently emphasising its resolve to maintain open domestic markets for trade and investment.

According to Sheng Laiyun, a spokesperson for the National Bureau of Statistics, the tariffs are likely to exert immediate pressure on the Chinese economy, yet they are not expected to impede its long-term growth trajectory.

It was not clear why China changed negotiators. This happened while Chinese officials said the country has many ways to react to what the U.S. is doing. These include using its 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.

Additionally, China implemented stricter regulations on the exportation of rare earth elements, vital components in advanced technology goods, aviation production, and military industries.

Before taking on his current role, Li served for approximately four and a half years as China's ambassador to the World Trade Organization, the institution overseeing international trade, to which Beijing has made an appeal regarding its tariff disagreement with the United States.

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

He has also held the positions of 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 economics of law from the University of Hamburg.