Beijing: China appoints new international trade negotiator on Wednesday amid tariff tensions with the United States
Government says Lee Changgang has been appointed to replace Wang Shouwen
Since the United States has raised tariffs in dozens of countries, the two largest economies in the world have been steadily increasing their commodity tariffs on each other. China’s export tax rate to the United States is 145%, while most responsibilities in other countries receive a 90-day probation.
Earlier on Wednesday, China announced its economy grew by 5.4% annually in January-March and was backed by strong exports. Analysts predict that the world’s second-largest economy will slow significantly in the coming months as U.S. import tariffs take effect on China.
Exports are a strong factor in China’s annual growth rate of 5% in 2024, with the official target for this year still being around 5%.
Beijing hit back at the U.S. with a 125% tariff on U.S. exports, while also stressing its determination to keep its market open to trade and investment.
National Bureau of Statistics spokesman Sheng Laiyun In the short term, tariffs will put pressure on China’s economy but will not derail long-term growth.
It is unclear why China is changing negotiators, but the change comes as Chinese officials say the country has multiple options to deal with U.S. action, including relying more on its own 1.4 billion consumer market, as well as Europe and countries in the global south. However, with the continued consumption of domestic consumption in China, it is difficult to replace American consumers.
China has also imposed more export controls on rare earths, including high-tech products, aerospace manufacturing and materials from the defense sector.
