China has officially dismissed its top trade negotiator to the World Trade Organization, Li Chenggang, just days after U.S. Treasury Secretary Scott Bessent publicly labeled him “unhinged” and accused him of rogue behavior during a tense visit to Washington.
State-run outlet Xinhua confirmed Monday that Li, 58, was removed from his post in Geneva as part of a broader ambassadorial reshuffle approved by President Xi Jinping. While China offered no public explanation for the move, the timing raised eyebrows, coming shortly after Bessent’s biting comments added fuel to simmering U.S.–China trade tensions.
Last week, Bessent told reporters that Li had shown up “uninvited” during a high-stakes U.S. visit in August, made belligerent demands, and repeated what Bessent described as “China’s false narratives” about trade. “This individual was very disrespectful,” Bessent said. “He has gone rogue.”
Li had previously served as a key legal expert on WTO rules for China’s Commerce Ministry and played a central role in several past rounds of U.S.-China negotiations. But behind the scenes, frustration with his combative style had reportedly grown within the Biden and Trump administrations alike. He was reassigned quietly in April, though Monday’s announcement formalized his removal from Geneva.
Li Yongjie, his successor, presented her credentials to the WTO on September 29.
Rare Earths, Soybeans, Fentanyl All on the Table
The diplomatic flare-up comes at a precarious moment for global markets. President Donald Trump has threatened to reinstate 100% tariffs if China’s escalating export restrictions on rare earths, fentanyl precursors, and other goods continue. Beijing, for its part, has retaliated by targeting American soybeans and industrial products with punitive levies.
Trump, speaking with Maria Bartiromo on Fox News’ “Sunday Morning Futures,” warned China not to “play the rare earth game” and said the U.S. expects a “fair deal.” He has demanded that China quadruple its U.S. soybean purchases and accused Beijing of harming U.S. farmers, whose sales to China have plummeted to zero in 2025 — down from $12.6 billion last year.
Meanwhile, the fentanyl crisis remains a point of bitter dispute. Trump says China has failed to curb the export of precursor chemicals, while Chinese officials blame America’s addiction crisis and have called for mutual accountability.
High Tariffs Loom as Truce Deadline Nears
Under a May 2025 trade truce, both sides agreed to temporarily lower tariffs to around 10% and suspend new levies for 90 days. That deal was extended once but is now set to expire on November 10, just days after Trump and Xi are expected to meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in South Korea.
Despite Bessent’s confrontational tone toward Li, he has held recent talks with Chinese Vice Premier He Lifeng. The two spoke via video last Friday and are scheduled to meet again this week in Malaysia to attempt to avert a renewed tariff war.
The U.S. and China remain deeply divided on trade fundamentals, from tech exports to energy and agriculture. Trump’s administration has accused Beijing of backtracking on commitments and using economic leverage to retaliate against American industries.
In an unusually blunt statement over the weekend, President Trump suggested Beijing was no longer negotiating in good faith: “They’re playing games again, but they need us more than we need them.”
Beijing: “Trade War Serves No One”
On Monday, Chinese Foreign Ministry spokesman Guo Jiakun responded to Trump’s comments by urging de-escalation. “A trade war does not serve the interests of either party,” he said. “We hope the U.S. side will return to the path of dialogue and consultation.”
Chinese officials, meanwhile, insisted that their new rare earths restrictions would not disrupt normal trade, describing them as a “long-term policy tool” in response to growing U.S. sanctions on Chinese companies.
Still, with the WTO envoy removed and tensions growing by the day, the fragile détente between Washington and Beijing faces one of its toughest tests yet.
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