Tensions between the world’s two largest economies escalate as China appoints new trade envoy amid disputes with US over tariffs, while Japan prepares for talks to drop duties on Japanese goods.
Beijing has appointed Li Chenggang as its new international trade envoy, replacing Wang Shouwen in a move aimed at breaking the impasse in talks with the United States over tariffs. The appointment comes amid escalating tensions between the world’s two largest economies, with China pushing back against Washington‘s 145% tariffs on Chinese goods.
Li Chenggang is a Chinese diplomat who has served as the Secretary General of the International Chamber of Commerce (ICC) since 2019.
Prior to this role, he held various positions in the Chinese government, including serving as the Deputy Director-General of the Department of Treaty and Law at the Ministry of Foreign Affairs.
Li holds a Master's degree in law from Peking University.
He has also been involved in international economic diplomacy and has written articles on topics such as trade and investment.
The White House has refused to lift the tariffs, which have caused significant turmoil in global markets, and instead says ‘the ball is in China’s court’ as it seeks Beijing to make a deal. Trump has accused China of ‘reneging’ on a deal to purchase Boeing jets and parts, further straining relations.
Japan Prepares for Tariff Talks with US
Meanwhile, Japan’s chief trade negotiator Ryosei Akazawa is set to visit Washington this week for talks with senior White House officials. Tokyo hopes to build a relationship of trust with Washington and convince the US to drop 24% duties on Japanese goods. However, Japan still faces significant tariffs on exports to the US, including a universal 10% levy on exports.
Global Response to Trump’s Tariffs
The US tariffs have sparked a global backlash, with many countries facing significant economic challenges due to the levies. The situation has been described as a ‘national crisis’ by Japanese Prime Minister Shigeru Ishiba, who has ruled out retaliatory measures against Washington, citing concerns that they would further harm Japan’s economy and national interests.
As tensions continue to escalate, Beijing is weighing its response to Trump‘s tariffs, with some analysts speculating that the appointment of Li Chenggang as trade envoy may be a signal that China is ready to break the impasse in talks. However, the outcome of these negotiations remains uncertain, and the situation continues to unfold with significant implications for global trade and economic stability.
