China appoints new commerce envoy in face of tariff turmoil

China has unexpectedly appointed a brand new commerce envoy, as officers mentioned the US’s apply of “tariff obstacles and commerce bullying” is having a critical affect on the worldwide financial order.

Li Chenggang, a former assistant commerce minister and WTO ambassador, is taking on from veteran commerce negotiator Vice Commerce Minister Wang Shouwen.

The shift comes as Beijing refuses to again down in an escalating commerce battle with Washington triggered by US President Donald Trump’s hefty tariffs on Chinese language items.

China’s already sluggish financial system is bracing for the affect on a key income – exports.

Beijing introduced on Wednesday its GDP grew by 5.4% between January and March, in contrast with the identical interval a yr earlier.

The determine has exceeded expectations however displays the interval earlier than US tariffs jumped from 10% to 145%, and Chinese language officers warned of extra financial ache forward.

Whereas each Washington and Beijing have mentioned they’re open to negotiating, neither have made a transfer to take action but.

When that occurs, Li, 58, will play a key function. He beforehand served as a deputy everlasting consultant to the United Nations in Geneva and has held a number of key jobs within the commerce ministry.

Talking to Reuters, one knowledgeable mentioned the change in jobs was “very abrupt and doubtlessly disruptive” given the present commerce tensions – including that Wang additionally had expertise negotiating with US for the reason that first Trump administration.

“It could be that within the view of China’s prime management, given how tensions have continued escalating, they want another person to interrupt the deadlock… and at last begin negotiating,” mentioned Alfredo Montufar-Helu, a senior adviser to the Convention Board’s China Centre.

Nevertheless, one other analyst who spoke to Reuters recommended the transfer may simply be a “routine promotion” that simply occurred to return at a very tense interval in time.

Talking at a press convention on Wednesday, Sheng Laiyun, deputy commissioner of the Nationwide Bureau of Statistics (NBS) warned that US levies would put stress on China’s overseas commerce and financial system, however added that China’s financial system is resilient and may enhance in the long run.

“We firmly oppose the US apply of tariff obstacles and commerce bullying,” mentioned Sheng.

“It violates the financial legal guidelines and the rules of the World Commerce Group, has a critical affect on the world financial order, and drags down the restoration of the world financial system.”

In an editorial by state information outlet China Day by day earlier this week, the outlet described the US’s behaviour as “capricious and harmful”, including that it ought to “cease whining about itself being a sufferer in world commerce”.

“The US shouldn’t be getting ripped off by anyone…quite… [it] has been taking a free journey on the globalisation practice,” the editorial went on to say.

Beijing’s GDP figures for the primary quarter have crushed analysts’ expectations – which hovered round 5.1%.

Progress on this planet’s second-largest financial system was underscored by sturdy retail gross sales and promising manufacturing facility output.

However US tariffs on China soared solely in latest weeks. Trump raised them to 145% early final week, and Beijing retaliated by elevating levies on US items to 125%.

So among the enlargement may very well be right down to factories speeding out shipments to beat Trump’s tariffs – an idea known as “entrance loading”.

Analysts say a surge in China’s exports in March shall be sharply reversed within the months forward as tariffs take full impact.

China’s property downturn can be nonetheless dragging on progress. Property funding fell by virtually 10% within the first three months of 2025 in comparison with the identical interval final yr.

New dwelling costs additionally had been unchanged in comparison with the earlier month – an indication that there are nonetheless too many empty properties, and never sufficient individuals shopping for them.

Officers have mentioned there’s ample room for stimulus measures, and loads of instruments that they’ll use to bolster the financial system and roll out extra assist measures.

However it is going to be particularly essential for China to spice up home demand and spending this yr as Washington’s tariffs hits Beijing’s essential export sector.