In backdrop of increasing trade talks with the US, China has appointed Li Chenggang, a long-time diplomat, as its new chief trade negotiator replacing veteran Wang Shouwen, who was key to the 2020 US-China trade deal.
Li’s naming is a significant shift as Washington’s 145% tariffs on Chinese exports pinch the world’s second-biggest economy. In response, Beijing has slapped retaliatory tariffs of 125% on US goods and tightened export curbs for rare earths—key materials for high-tech and defense industries.
With more than three decades of experience in global trade diplomacy, most recently as China’s ambassador to the World Trade Organization, Li has unmatched expertise gained from that time he worked on China’s WTO accession. Experts think that a free-trader and an internationalist economics expert, will take a more open approach with this calculated negotiation through 2017, at least. 
While China grew at 5.4% in the first quarter, helped by a strong performance in exports, analysts say that a slowdown is coming with rising US tariffs in the coming months.
President Xi Jinping, presently visiting Southeast Asia for trade talks in a push to promote China as a steady trade partner is affirming Beijing’s larger shift towards Asia and the Global South to hedge against reliance on Western markets.
The Foreign Ministry reaffirmed China’s willingness to engage in dialogue but called for the U.S. to give up on “maximum pressure” tactics. “Negotiations are based on equality, mutual respect, and benefit,” said spokesman Lin Jian.
Li’s nomination could signal a paging down on the trade showdown – but not a simpler one.
