Xi’s new trade czar He Lifeng steps into US-China talks with a tougher line amid Trump tariffs

Xi’s new trade czar He Lifeng steps into US-China talks with a tougher line amid Trump tariffs

A new chapter in US-China trade tensions is unfolding as Beijing replaces its seasoned negotiator Liu He with Vice-Premier He Lifeng — a trusted ally of President Xi Jinping — signalling a firmer stance in negotiations with the US amid escalating tariff threats from President Donald Trump, the Financial Times reported.

From reformist to loyalist: China changes its lead negotiator

Liu He, known for his Harvard education and reform-minded views, previously brokered the “phase-one” deal with Trump in 2020. His successor, He Lifeng, a 70-year-old economist and longtime Xi confidant, is expected to take a more rigid approach. Analysts say He lacks Liu’s Western-friendly style and fluent English but brings decades of technocratic experience and strong ideological alignment with China’s top leader.

“He’ll probably be a more difficult interlocutor for the Americans,” said Andrew Gilholm of Control Risks, adding that Beijing seems prepared to endure trade pain longer than the Trump administration.

Geneva meeting marks first high-level contact since Trump’s new tariffs

He Lifeng is set to meet US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in Geneva on Saturday — the first such engagement since Trump’s April tariff salvo, dubbed “liberation day” by Chinese officials. The two sides have since increased levies, with risks rising of an economic blockade between the world’s two largest economies.

Despite Trump’s claim that “China very much wants to make a deal,” experts are sceptical. “All of this will ultimately be decided above them,” said Gilholm, referring to the limited scope of the Geneva meeting.

He’s deep ties with Xi may help — or hinder — progress

Unlike Liu, He Lifeng has been part of Xi’s inner circle since their days in Fujian. His loyalty, some argue, gives him credibility in reflecting Xi’s vision. But others warn his lack of flexibility may hamper genuine negotiation. “It’s important that He Lifeng knows Xi personally for these talks to be successful,” said Neil Thomas of the Asia Society Policy Institute.

He’s team includes Liao Min, a finance vice-minister and former Liu aide, and Li Chenggang, a European-educated WTO envoy fluent in English. However, the delegation’s purpose appears to be limited to “initial engagement,” not full-fledged deal-making, according to Chinese analysts.

Beijing ramps up business diplomacy while bracing for confrontation

While He has cultivated ties with US business leaders — including Apple’s Tim Cook and Nvidia’s Jensen Huang — Beijing’s official stance remains firm. “Appeasement cannot buy peace, nor can compromise earn respect,” said Gao Jian of Tsinghua University.

As US and Chinese officials prepare for talks in Geneva, the prospects for a meaningful reset remain slim. Trump’s aggressive trade measures and China’s hardened posture under He Lifeng suggest that both sides are digging in rather than seeking a swift resolution.