China has dismissed its top trade envoy to the World Trade Organization, Li Chenggang, state media announced Monday — just days after U.S. Treasury Secretary Scott Bessent branded him “unhinged,” escalating tensions between the world’s two largest economies.
The announcement, published Monday by China’s state-run Xinhua News Agency, confirmed a series of ambassadorial reshuffles, including Li’s dismissal as China’s permanent representative to the WTO. He, however, retains his roles as international trade representative and vice minister of commerce.
Although Beijing insisted the reshuffle was “procedural,” it has stirred speculation about diplomatic tension following Li’s contentious remarks during a visit to Washington in August. According to Bessent, the envoy allegedly warned that “China would unleash chaos on the global system if the U.S. proceeded with docking fees for Chinese vessels.”
Speaking on CNBC last week, the U.S. Treasury Secretary described Li’s outburst as “slightly unhinged,” remarks that have since reverberated through trade circles in both capitals.
Li, who led the Chinese delegation during the August trade consultations, had urged “equal dialogue and consultation” between the two sides, according to China’s commerce ministry. His dismissal now adds a new layer of intrigue to the already fraught U.S.-China economic relationship.
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The two countries, whose trade disputes have repeatedly rattled global markets, agreed over the weekend to resume negotiations in the coming week — an attempt to halt the escalation of tariff hostilities.
Tensions intensified earlier this month after Beijing imposed sweeping controls on its rare earths industry, a move Washington interpreted as a pressure tactic in the ongoing economic rivalry. In response, President Donald Trump threatened 100 percent tariffs on Chinese imports.
Meanwhile, port fee battles have deepened the standoff: China recently announced “special port fees” on American vessels, mirroring a similar measure introduced by the United States in April.
While China’s foreign ministry continues to frame Li’s removal as administrative, analysts say the timing — following a high-profile U.S. rebuke — underscores how personal and symbolic gestures have become in the world’s most consequential trade relationship.