Chinese President Xi Jinping has dismissed Li Chenggang, a senior trade negotiator within the Chinese Communist Party, following public criticism from U.S. Treasury Secretary Scott Bessent during escalating tensions over China’s restrictions on rare earth mineral exports and U.S. tariff policies. The removal was announced Monday, coinciding with recent diplomatic engagements including an August meeting in Washington, D.C., and upcoming discussions in Malaysia this weekend.
Bessent described Li as “unhinged” and “very disrespectful” during negotiations in August, alleging the Chinese official threatened global economic instability if the U.S. proceeded with 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 his roles by Xi. U.S. officials present at the talks reportedly described Li as delivering a one-sided political lecture to American counterparts.
The leadership change occurs amid heightened U.S.-China trade tensions, following China’s imposition of export controls on rare earth minerals—critical for advanced technology manufacturing. In response, U.S. President Donald J. Trump announced a 100% tariff on Chinese imports unless Beijing rescinds the restrictions. Analysts suggest Xi’s decision to replace Li could signal a potential shift in Beijing’s trade strategy as negotiations resume.
Upcoming talks in Malaysia and a planned meeting between Trump and Xi in South Korea later this month are viewed as pivotal steps in addressing the escalating conflict. Bessent hinted at the likelihood of Li’s dismissal, stating, “Things have de-escalated,” while expressing hope for mutual respect in future discussions.
