China taps export controls veteran amid trade tensions with US, Japan

By Joe Cash

BEIJING, Jan 12 (Reuters) - China named an expert in export controls and regional trade agreements as deputy trade representative on Monday, bolstering its negotiating team with an official familiar with President Donald Trump's tactics as Beijing eyes a U.S. deal and entry into a trans-Pacific pact.

Jiang Chenghua, who worked on a U.S.-China investment agreement that Trump shelved after taking office in 2017 and previously headed up the commerce ministry's export controls division, replaces Li Yongjie, who was appointed China's representative to the World Trade Organization in October.

Trade diplomats say Beijing has upgraded the calibre of its negotiators since Trump first targeted China during that previous term in the White House, with some believing that China may now hold the upper hand at the negotiating table.

TWO TRADE PRIORITIES

The world's second-largest economy heads into 2026 with two trade policy priorities: securing a durable deal with the U.S. that restores tariffs on Chinese goods to levels that keep access to the world's top consumer market viable, and advancing its bid to join a regional trade pact worth $12 trillion.

Beijing also wants to look tough on Taiwan, after Japanese Prime Minister Sanae Takaichi remarked that Tokyo could potentially be pulled into an attack on the democratically governed island, stoking fears among Japanese firms that China could again weaponise its export controls.

Furthermore, China is in the midst of overhauling its trade laws, with one Western trade negotiator pointing to Beijing's threat in October to sharply expand its rare-earth export controls as the moment lawmakers signalled they were prepared to adopt rules inconsistent with WTO norms, much like other major trading powers. China also revised its Foreign Trade Law in December.

TRADE WAR OR TRADE TIES?

A lawyer by training, Jiang's promotion puts two specialists in WTO protocol in charge of China's negotiators, after Li Yongjie relieved Li Chenggang at the WTO, enabling him to take up the position of lead trade negotiator.

Jiang obtained a doctorate from China University of Political Science and Law in 2008, writing his thesis on whether preferential regional trade agreements are compatible with the WTO's requirement that all members be treated equally.

Intimate knowledge of international trade law could give the Chinese side an edge by enabling them to press the U.S. or other trade partners as far as global trade rules allow when using trade weapons - including rare earth export controls - to secure better terms, analysts say.

Indeed, trade diplomats say Beijing's October escalation of its rare earth controls reflected a calculation that showcasing its ability to choke global critical supply chains would remind Washington of the leverage China holds should Trump press too far.

But Jiang’s expertise in regional trade agreements could also help Beijing as it seeks to improve trade ties with its neighbours.

LAUNCHING NEXT FIVE-YEAR PLAN

The production powerhouse has its work cut out if it is to persuade members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that China can meet the pact's high entry standards, a bloc originally rooted in an Obama‑era effort to counter the manufacturing juggernaut’s expanding economic influence.

Commerce Minister Wang Wentao has said that securing entry to the CPTPP is a priority for Beijing as it prepares to launch its next five‑year plan in March, which runs until 2030.

To join the pact, which accounts for roughly 15% of global GDP, Beijing will need to show it is prepared to sharply lower import tariffs, scale back state support for its manufacturing sector and relinquish its use of trade as a weapon.

Big question marks linger over China's commitment to those ambitions, however, with some negotiators saying Beijing submitted its bid mainly to block Taiwan from joining the bloc.