China appointed a new international trade representative at the Ministry of Commerce (MOFCOM) amid an unprecedented trade war with the United States. Li Chenggang, 58, will replace 59-year-old Wang Shouwen, who took part in negotiations over the 2020 trade deal with the U.S. Li, 58, has decades of experience handling international negotiations and also served as China’s Ambassador to the Geneva-based World Trade Organization (WTO) from 2021. He holds a bachelor’s degree in law from Peking University and a master’s degree in the economics of law from the University of Hamburg in Germany. Though it is unclear why Li has been appointed, analysts said it could be a sign that Beijing is looking to make a breakthrough in negotiations with the U.S. over a potential deal to end the trade war.
“It might be because against the rising tensions after ‘Liberation Day’, Li might be seen as someone who could break the impasse in the negotiations,” said Alfredo Montufar-Helu, Senior Adviser to the China Center at U.S.-based research group The Conference Board. “Probably his experience in Geneva means that he has established linkages with key stake holders, including the U.S.” The appointment comes after weeks of rapid tit-for-tat tariff hikes between Beijing and Washington, with markets calling for a de-escalation of the trade conflict that could cause severe damage to the global economy. Trump has called on China to reach out to him to kick off negotiations to resolve the escalating trade confrontation. “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,” White House Press Secretary Karoline Leavitt said, reading from what she said was a statement Trump had dictated.
Chinese Commerce Minister Wang Wentao spoke with WTO Director-General Ngozi Okonjo-Iweala about the U.S.’ tariff policies and efforts to maintain the WTO’s role in the global trading system. Wang Yiwei, Director of the Institute of International Affairs at Renmin University in Beijing and a former Chinese diplomat, said Li’s knowledge of the WTO would be important in his new role. “China’s focus is on bilateral and regional deals that are open and can contribute to the WTO-led, rules-based global trade system under attack from Trump,” he said. Li’s appointment would also reassure the WTO and many smaller countries that rely on the rules-based global trading system, according to Wang. During his time at the WTO, Li was vocal in conveying Beijing’s opposition to Trump’s tariff policies.
Currently, Vice Premier He Lifeng is the lead official handling China-U.S. economic affairs. The top trade representative at MOFCOM often provides assistance and also handles working-level contacts with overseas counterparts. China began appointing international trade representatives holding a ministerial-level rank in 2010, as the country aimed to better protect its interests and sign more trade agreements, the South China Morning Post reports.