On Wednesday, China appointed Li Chenggang as its new top international trade negotiator amid ongoing tariff tensions with the US. Li replaces Wang Shouwen, who played a key role in the 2020 US-China trade deal. The US and China have been progressively imposing tariffs on each other’s goods, with China facing a 145% tax on exports to the US, while other nations were granted a 90-day reprieve for most duties.

Earlier in the day, China revealed that its economy grew by 5.4% in the first quarter of the year, driven by strong exports. However, analysts predict that growth will slow in the coming months as US tariffs on Chinese imports take effect. Exports were a major contributor to China's 5% growth target for 2024.

In retaliation, China has imposed 125% tariffs on US exports but remains committed to keeping its markets open for trade and investment. Although short-term tariffs may pressure China's economy, long-term growth is expected to remain intact, according to Sheng Laiyun from the National Bureau of Statistics.

The timing of the appointment is unclear, but it comes as Chinese officials discuss various strategies in response to US actions, including reliance on China's domestic market of 1.4 billion people and markets in Europe and the global south. However, replacing US consumers remains a challenge as domestic consumption continues to struggle.

China has also imposed stricter export controls on rare earth materials critical for high-tech products, aerospace, and defense industries. Before his new role, Li Chenggang served as China’s ambassador to the World Trade Organization for over four years and held various positions at the UN and the Ministry of Commerce. He holds a law degree from Peking University and a master’s degree in economics of law from the University of Hamburg.