China has unexpectedly appointed a new trade envoy, as officials said the US's practice of "tariff barriers and trade bullying" is having a serious impact on the global economic order. Li Chenggang, a former assistant commerce minister and WTO ambassador, is taking over from veteran trade negotiator Vice Commerce Minister Wang Shouwen. The shift comes as Beijing refuses to back down in an escalating trade war with Washington triggered by US President Donald Trump's hefty tariffs on Chinese goods. China's already sluggish economy is bracing for the impact on a key source of revenue - exports. Beijing announced on Wednesday its GDP grew by 5.4% between January and March, compared with the same period a year earlier. The figure has exceeded expectations but reflects the period before US tariffs jumped from 10% to 145%, and Chinese officials warned of more economic pain ahead. While both Washington and Beijing have said they are open to negotiating, neither have made a move to do so yet. When that happens, Li, 58, will play a key role. He previously served as a deputy permanent representative to the United Nations in Geneva and has held several key jobs in the commerce ministry. Speaking to Reuters, one expert said the change in jobs was "very abrupt and potentially disruptive" given the current trade tensions - adding that Wang also had experience negotiating with US since the first Trump administration. "It might be that in the view of China's top leadership, given how tensions have continued escalating, they need someone else to break the impasse... and finally start negotiating," said Alfredo Montufar-Helu, a senior adviser to the Conference Board's China Centre. However, another analyst who spoke to Reuters suggested the move could just be a "routine promotion" that just happened to come at a particularly tense period in time. Speaking at a press conference on Wednesday, Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS) warned that US levies would put pressure on China's foreign trade and economy, but added that China's economy is resilient and should improve in the long term. "We firmly oppose the US practice of tariff barriers and trade bullying," said Sheng. "It violates the economic laws and the principles of the World Trade Organization, has a serious impact on the world economic order, and drags down the recovery of the world economy." In an editorial by state news outlet China Daily earlier this week, the outlet described the US's behaviour as "capricious and destructive", adding that it should "stop whining about itself being a victim in global trade". "The US is not getting ripped off by anybody...rather... [it] has been taking a free ride on the globalisation train," the editorial went on to say. Beijing's GDP figures for the first quarter have beaten analysts' expectations - which hovered around 5.1%. Growth in the world's second-largest economy was underscored by strong retail sales and promising factory output. But US tariffs on China soared only in recent weeks. Trump raised them to 145% early last week, and Beijing retaliated by raising levies on US goods to 125%. So some of the expansion could be down to factories rushing out shipments to beat Trump's tariffs - a concept called "front loading". Analysts say a surge in China's exports in March will be sharply reversed in the months ahead as tariffs take full effect. China's property downturn is also still dragging on growth. Property investment fell by almost 10% in the first three months of 2025 compared to the same period last year. New home prices also were unchanged compared to the previous month - a sign that there are still too many empty homes, and not enough people buying them. Officials have said there is ample room for stimulus measures, and plenty of tools that they can use to bolster the economy and roll out more support measures. But it will be especially important for China to boost domestic demand and spending this year as Washington's tariffs hits Beijing's crucial export sector.
China appoints new trade envoy in face of tariff turmoil
TruthLens AI Suggested Headline:
"China Appoints New Trade Envoy Amid Escalating U.S. Tariff Challenges"
Bbc News
7.9
TruthLens AI Summary
In a significant shift amidst escalating trade tensions with the United States, China has appointed Li Chenggang as its new trade envoy, replacing Vice Commerce Minister Wang Shouwen. This change is perceived as a response to the detrimental effects of U.S. tariffs and trade practices on the global economy, which Chinese officials have characterized as "tariff barriers and trade bullying." Li, a seasoned diplomat with extensive experience in trade negotiations, including his role as a former assistant commerce minister and WTO ambassador, is expected to play a crucial role in navigating the complex and deteriorating trade relationship with Washington. The appointment comes at a time when China's economy, despite showing a GDP growth of 5.4% in the first quarter, faces increasing pressure from the U.S. tariffs that have surged dramatically, affecting a key source of revenue for the nation: exports. Analysts have expressed concerns that the transition in leadership could be disruptive, particularly given Wang's experience in dealing with U.S. trade representatives during the previous Trump administration. However, there are differing opinions on whether this change signals a strategic shift or is merely a routine promotion within the government hierarchy.
As the trade war intensifies, Chinese officials are bracing for the impacts of U.S. tariffs on their foreign trade and overall economic performance. Deputy commissioner of the National Bureau of Statistics, Sheng Laiyun, highlighted the resilience of the Chinese economy, asserting that the country will continue to oppose U.S. trade practices that violate global economic principles. Despite the recent GDP growth exceeding analysts' expectations, concerns about the long-term effects of tariffs loom large, with predictions of a potential reversal in export growth as these tariffs take full effect. Additionally, the ongoing downturn in China's property sector poses further risks to economic stability, with investments in property declining significantly. In light of these challenges, Chinese officials have indicated the need for enhanced domestic demand and spending to mitigate the impact of U.S. trade measures, emphasizing the importance of economic support mechanisms in the face of external pressures.
TruthLens AI Analysis
The recent appointment of a new trade envoy in China is a significant development amidst ongoing trade tensions with the United States. The decision to replace Vice Commerce Minister Wang Shouwen with Li Chenggang indicates a strategic shift by Beijing as it grapples with the repercussions of U.S. tariffs. This change reflects a broader response to what Chinese officials describe as "trade bullying" from the U.S., which they argue is destabilizing the global economic landscape.
Implications of the Appointment
Li Chenggang, with his background as a former assistant commerce minister and WTO ambassador, is expected to play a crucial role in future negotiations. The abrupt nature of this change suggests that China's leadership may be seeking a fresh approach to navigate the escalating trade conflict. This could be interpreted as a signal of urgency from Beijing, aiming to break the current stalemate.
Perceived Economic Challenges
Though China's GDP growth of 5.4% for the first quarter of the year exceeded expectations, it is important to note that this figure does not account for the recent increase in tariffs, which have risen from 10% to 145%. Analysts have expressed concerns that the real economic impact of these tariffs has yet to be fully realized, indicating potential challenges ahead for China's economy.
Negotiation Dynamics
Both the U.S. and China have expressed willingness to negotiate; however, no concrete steps have been taken thus far. The new envoy’s appointment may be an attempt to revitalize negotiations that have stalled. Experts have differing opinions on the implications of this change, with some viewing it as a necessary shift to address mounting tensions, while others suggest it could merely be a routine promotion.
Public Perception and Trust
The article seems to aim at reassuring the public and stakeholders about China’s commitment to addressing trade issues effectively. The language used, highlighting concerns about U.S. practices, may serve to foster a sense of national pride and resilience among Chinese citizens while also positioning China as a victim of unfair trade practices.
Market Reactions and Global Implications
The news could have repercussions on global markets and investor sentiment, particularly concerning companies reliant on exports or those affected by tariffs. Investors might closely monitor sectors such as technology and manufacturing, which have been significantly impacted by the trade war. The ongoing tensions and the potential for negotiation could influence stock prices and market stability.
Geopolitical Context
This development holds relevance in the context of global power dynamics, especially as tensions with the U.S. continue. The appointment of a new trade envoy could be seen as China's strategic maneuvering to assert its position in international trade discussions, especially in light of recent geopolitical shifts.
Use of Artificial Intelligence
While it is uncertain if AI was used in the drafting of this news article, the structured presentation of the information suggests a focus on clarity and engagement. AI models could potentially aid in analyzing trends or sentiments, influencing how such news is framed to resonate with the audience. In conclusion, the article presents a complex picture of trade relations between the U.S. and China, emphasizing the urgency for negotiation and adaptation amid rising tariffs and economic challenges. The trustworthiness of the article appears solid, as it aligns with current economic realities and expert analyses, though it may carry a degree of bias in portraying China's position.