China appointed a new international trade representative at the Ministry of Commerce (Mofcom) on Wednesday amid an unprecedented trade war with the United States.
Li Chenggang will replace 59-year-old Wang Shouwen, who participated in negotiations over the 2020 trade deal between the world’s two largest economies, according to a government statement.
Li, 58, has decades of experience handling international negotiations at Mofcom, 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.
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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 US 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, a senior adviser to the China Center at US-based research group The Conference Board.
“Probably his experience in Geneva means that he has established linkages with key stake holders – their governments including the US.”
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 deal severe damage to the global economy.
US President Donald Trump has raised tariffs on Chinese goods by an eye-watering 145 per cent since returning to office in January, causing Beijing to hit back with its own retaliatory duties.
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 on Tuesday, reading from what she said was a statement Trump had dictated.
Last Friday, Chinese commerce minister Wang Wentao spoke with WTO Director-General Ngozi Okonjo-Iweala about the US’ 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-base 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.
“Without China’s backing, the WTO would have already been paralysed,” he said.
During his time at the WTO, Li was vocal in conveying Beijing’s opposition to Trump’s tariff policies.
“The world faces a series of tariff shocks,” Li warned in February during a meeting of the global trade body’s General Council. “The US is unilaterally and arbitrarily, blatantly violating WTO rules. China firmly opposes such measures.”
Currently, Vice-Premier He Lifeng is the lead official handling China-US 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 negotiation representatives holding a ministerial-level rank in 2010, as the country aimed to better protect its interests and agree more trade deals.
More from South China Morning Post:
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