CaliToday (21/10/2025): China has formally removed Li Chenggang from his post as the nation's permanent representative to the World Trade Organization (WTO), state media reported Monday. The move finalizes a reshuffle that places the veteran negotiator at the center of Beijing's trade strategy, even as it follows a period of extraordinary diplomatic friction.
The announcement, made by the official Xinhua news agency, comes just weeks after US Treasury Secretary Scott Bessent publicly labeled Li "unhinged" and "very disrespectful," exposing deep personal acrimony between key figures in the world's most critical trade relationship.
This leadership change is formalized against a backdrop of severely escalating trade tensions. The two economic superpowers are grappling with a new round of hostilities, including fresh US sanctions on foreign companies and retaliatory Chinese export curbs on rare earths and other critical materials.
A Public and "Unhinged" Spat
The removal follows a highly unusual and public rebuke from Washington. In a public event last week, US Treasury Secretary Scott Bessent took the extraordinary step of singling out Li by name, describing his recent conduct in scathing terms.
"Perhaps the vice minister who showed up here with very incendiary language on Aug. 28 has gone rogue," Bessent stated at a press conference, adding to an earlier remark where he called Li "unhinged."
"This individual was very disrespectful," Bessent concluded.
The Treasury Secretary’s anger reportedly stemmed from a contentious visit Li made to Washington in late August. According to a source briefed on the matter, Li’s delegation "ruffled feathers" in the Trump administration. The source, who requested anonymity due to the sensitivity of the matter, claimed Li arrived uninvited, demanded senior-level meetings, and proceeded to "lecture the Americans," while "restating China's false narratives."
High-Stakes Diplomacy Before Summit
Despite the personal animosity, both sides are now scrambling to de-escalate tensions ahead of a crucial, expected summit between President Donald Trump and his Chinese counterpart, Xi Jinping. The two leaders are anticipated to meet on the sidelines of the APEC summit in South Korea later this month.
In an effort to stabilize the relationship, Secretary Bessent has been in communication with China's economic tsar, He Lifeng. Bessent wrote on the social media platform X that he held a "frank and detailed" video call with He on Friday.
The two top economic officials are scheduled to meet in person in Malaysia next week, in a critical bid to forestall another round of escalating US tariffs on Chinese goods.
Li's New Role and Veteran Status
While the timing is combustible, Li Chenggang's move is not a demotion. The Xinhua announcement was part of a routine list of ambassadorial changes approved by President Xi Jinping, formalizing Li's April appointment to the powerful job of lead international trade negotiator, replacing veteran Wang Shouwen.
That April appointment itself was highly significant, coming just days after Beijing imposed retaliatory tariffs of 125% against Washington, signaling a hardline stance early in the trade war.
Li, 58, is a central figure in the dispute. As the former WTO envoy and an assistant minister of commerce, he played a key role in four successive rounds of high-stakes trade talks as the two nations sought to avert the current tariff war.
An expert in WTO law with a graduate degree from Germany's Hamburg University in addition to the elite Peking University, Li has served as China's ambassador to the WTO for over four years. His new counterpart in Geneva is Li Yongjie, who, according to the trade body's social media, presented her credentials on September 29.