China Removes Top Trade Negotiator Trump Official Called ‘Unhinged’

Chinese President Xi Jinping removed and replaced Li Chenggang as one of Beijing’s top trade negotiators, state news agency Xinhua reported, after the U.S. Treasury Secretary called him “unhinged”.

It comes as the U.S.-China trade war reignites after Beijing tightened its rare earth export controls, prompting U.S. President Donald Trump to threaten a 100 percent tariff in retaliation.

Li was removed as Permanent Representative of the People’s Republic of China to the World Trade Organization (WTO), Ambassador Extraordinary and Plenipotentiary, and Deputy Permanent Representative to the United Nations Office at Geneva and other international organizations in Switzerland. He was replaced by Li Yongsha.

The week before, Bessent had described a meeting with Li in Washington at which he had threatened the U.S. over the issue of shipping fees.

“There was a lower-level trade person who was slightly unhinged here in August,” Bessent told CNBC in an appearance at the network’s Invest in America forum, and referenced Li by name.

Li was “threatening…that China would unleash chaos on the global system if the U.S. went ahead with our docking fees for Chinese ships,” Bessent said.

This is a developing article. Updates to follow.