A Shadow Over Trade: The Sudden Fall of China’s Deal-Maker
This was announced in an official statement on Wednesday when China appointed Li Chenggang the vice minister of commerce, as well as the principal representative for international trade negotiation, replacing Wang Shouwen.
At 58, Li He is thus best placed among key members who negotiate trade deals for China at a time when Beijing deals with trade disputes with the U.S. Neither country seems certain for immediate talks, for they have both ratcheted radio tension.Global trade tensions
"In the view of China's top leadership, they may need someone else to deescalate tensions," said Alfredo Montufar-Helu, head of the China Center at The Conference Board, while it would be difficult to understand Beijing's move at this precise moment.
"This is certainly a very abrupt and potentially disruptive change given the quick escalation we have seen in trade tensions," he said.Fentanyl trade
While praising Wang's experience in trade negotiations with the United States since Trump's first term in office, Montufar-Helu argued that Li has the "proper record to take over this new role given his extensive experience on trade issues within the ministry of commerce."
Li has been working in China's commerce department since the last decade, thus serving at various capacities there-from being China's representative to the WTO to various other international organizations.
In formal documents, Vice Premier He Lifeng is noted to head the negotiations of China-U.S. trade. This activity was previously overseen by former Vice Premier Liu He, who represented China during the trade negotiations with former President Donald Trump's administration and the signing of the Phase One agreement.
According to Kenneth Jarrett, a senior advisor to Albright Stonebridge Group, the assistance provided by Wang this time was supported mostly by his position. "Considering the presence of Li, we can presume he serves the same way whenever the talks will go," Jarrett noted.
U.S. President Donald Trump is open to making a trade deal with China but wants Beijing to make the first move, White House press secretary Karoline Leavitt said Tuesday. "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," she said.
Since taking office in January, Trump has imposed tariffs of up to 145 percent on all Chinese imports, which would include a 20 percent tariff that was introduced on the grounds of Beijing's involvement in the fentanyl trade.
Last Friday, China responded by raising tariffs on U.S. imports in retaliation, with recent duties now reaching levels of 125 percent.
Analysts say that at such levels the duties could paralyze the trading of goods between the two largest economies in the world.
Before being substantively escalated again, the former vice-commerce minister Wang had remarked that Sino-U.S. relations had been "mutually beneficial and win-win in principle" multiple times in meetings with foreign executives of multinational firms.
Li was also present for discussions with several major entrepreneurs last month aimed at addressing the issues facing private enterprises after President Xi Jinping had voiced strong support for businesses back in February.
A further top-level reshuffle in Beijing saw Chen Xiaodong appointed director of the foreign aids agency while Wang Zhizhong became the head of the National Immigration Administration.
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