As Trump Tariffs Clash, China’s Trade Chief Steals the Spotlight

By Laurie Chen and Michael Martina

BEIJING/WASHINGTON (Cryptonesia) - When executives from many of the globe’s biggest corporations gathered in Beijing for a recent business conference, their primary objective was securing an audience with Chinese President Xi Jinping.

However, numerous people came away with a positive impression of Vice Premier He Lifeng, as noted by a U.S. businessperson who was informed about the meetings.

A close advisor to the Chinese leader, He acts as Xi's primary deputy in managing the globe's second-biggest economy.

U.S. President Donald Trump has repeatedly urged Xi to call him for discussions about a potential trade deal after slapping 145% tariffs on most Chinese goods as part of his "Liberation Day" salvo on April 2.

However, any exit ramp from the economic tensions may well go through He, who serves as Xi's chief negotiator for Sino-American trade issues.

The Cryptonesia interview involved discussions with 13 foreign investors and diplomats who have interacted with him over the last twelve months. These individuals characterized the 70-year-old’s transformation from being a rigid Communist Party official with poor English skills and an aversion to deviating from scripted statements, into someone more self-assured. This new persona has won them over due to his demonstrated effectiveness in action.

Many individuals chose to speak anonymously to share sensitive dealings they had with him, as he also holds significant authority over the regulation of China’s extensive financial industry.

According to Cryptonesia's analysis of his public appearances, the vice premier has participated in at least 60 meetings with foreign individuals over the last year. This represents a significant rise compared to the 45 meetings that occurred during the period from March 2023 to March 2024 after he assumed the role of vice premier.

China's State Council did not reply to a fax seeking their comments. Although the White House later indicated a desire to reduce tensions, they chose not to address queries regarding their readiness to interact with He.

Trump has asserted several times that Beijing and Washington were already in trade talks and he told Time magazine in an interview published Friday that Xi had called him, without specifying when. The two leaders had spoken before Trump took office in January.

China has consistently refuted claims that discussions about tariffs were underway, although it did waive certain U.S. products from its counter-tariffs on Friday. Additionally, Beijing insists that Washington must cease issuing threats and applying “maximum pressure” if they wish to reach an agreement, along with seeking appropriate counterparts within the U.S. for future talks.

DEFENDER OF STATUS QUO?

Should extensive negotiations commence, Li Chenggang, who has recently been named as Beijing’s principal trade negotiator, will engage at an operational daily level. However, he will also hold a crucial position in supervising these talks, during which Washington aims to decrease its approximately $300 billion merchandise trade gap with Beijing.

Even though he grew more at ease interacting with Western executives, many of the business people interviewed by Cryptonesia noted that he lacked innovation when it came to policies.

The vice premier's recently bolstered standing among American corporate leaders probably got a boost as Chinese officials seemed particularly consistent and assured following the turmoil in the U.S., according to a businessman privy to discussions from last month’s gatherings.

His most recent role was at the helm of China's primary macroeconomic planning body, where he oversaw the development of industrial policies. He has often advocated for Beijing’s export-driven economic model when speaking with international audiences.

A U.S. businessman informed Cryptonesia that he, having advocated increasing manufacturing rather than focusing on domestic consumption, acts as Xi's "top deputy for achieving a trillion-dollar trade surplus."

He has also frequently dismissed concerns regarding Chinese overproduction, which are echoed by numerous nations that China is currently trying to woo as it looks for ways to alleviate export pressures and explore fresh collaboration opportunities, according to three sources who spoke with Cryptonesia.

He will defend China’s trade surplus on a day-to-day basis," stated Wen-Ti Sung, a senior fellow at the Atlantic Council's Global China Hub. "It seems unlikely that he would ease his stance on the trade surplus, which is crucial for employment generation in China.

The deputy prime minister has been actively involved in China's recent efforts to engage with major economies such as Japan and the European Union. Additionally, he plans to visit Paris next month for an economic discussion where French authorities aim to talk about the possibility of China reducing tariffs on imported cognac, as stated by a diplomatic insider.

A representative from France's economics ministry did not promptly respond to a request for comment.

UNDERWHELMING START

Prior to taking over his present position, the economy was managed by Liu He, an economist educated at Harvard with proficient English skills who struck a trade deal with the U.S. during the initial term of the Trump administration.

Although the vice premier holds a PhD in economics from Xiamen University, his expertise lies mainly within domestic issues, which implies he faces an adjustment period in representing China economically on the global stage.

Several U.S. business leaders expressed disappointment with He following his presentation to them in July regarding the conclusions of an important economic policy gathering, as reported by someone who was there.

The individual mentioned that the vice premier, who according to party traditions is supposed to step down in 2027, appeared rather lacking in energy during the briefing. He was surrounded by numerous assistants.

Unlike his predecessors such as Liu and Wang Qishan, who were recognized by international counterparts for their articulate speech and comparatively relaxed demeanor, he stands out differently.

The deputy prime minister likewise dismissed worries regarding Beijing’s restrictions on exports of rare earth materials and the well-being of Japanese citizens in China subsequent to several stabbings. These issues were brought up by a Japanese business group in February.

The businessperson who was updated about his March meetings mentioned that previous talks with the vice premier were similar to "conversing with ChatGPT." However, he noted that the Chinese official has lately begun communicating in a manner that resonates better with Western executives.

The individual, having encountered him several times, was similarly struck by the vice premier's skill in elucidating Beijing’s stance on economic policies and delivering on pledges of support—something that officials not closely aligned with Xi have struggled to do. Details were not provided by the source.

A different international figure who encountered him earlier this year mentioned that Vice Premier He had a deep understanding of China’s economic challenges—encompassing deflationary trends and an aging populace, along with trade tariffs and the property market turmoil—and offered a nuanced examination of these matters.

The official also noted that he seemed quite confident regarding the future outlook of the domestic AI company Deepseek.

'TYPICAL BUREAUCRAT' AND DEMOLISHER

He climbed up the ranks within the local administrative system in his home province of Fujian, where Xi Jinping consolidated his influence as an official during the 1990s and into the early 2000s. During this period, he became a close ally of Xi and was even present at the latter’s wedding, according to previous reports by Cryptonesia.

In 2009, the official was relocated to Tianjin, an industrious harbor town, earning the moniker "He the Demolisher." He initiated extensive urban redevelopment programs and costly construction initiatives that lent the city a polished appearance yet simultaneously pushed it further into financial obligations.

Alfred Wu, a specialist in Chinese affairs from the National University of Singapore, noted that he placed significant emphasis on accelerating economic development and was notably “very supportive of real estate projects and urban renewal initiatives, similar to numerous municipal leaders during that period.”

Wu, who encountered He during his tenure as a journalist in Fujian, characterized the official as "a quintessential local bureaucrat and precisely what one would expect from an acolyte of Xi Jinping."

His top priority is putting into action Xi's guidelines, which places him in a more subservient role," he further explained.

(Laurie Chen reported from Beijing and Michael Martina from Washington; Additional reporting by Goh Kui Qing in New York; Edited by Katerina Ang)