China’s Vice Premier He Lifeng has emerged as a central figure in navigating the fallout from former President Donald Trump’s sweeping tariff edicts, which have levied duties of up to 145 percent on many Chinese exports. In recent months, global business executives and foreign diplomats have come to view He—long perceived as a reserved technocrat—as Xi Jinping’s indispensable envoy in any future Sino-U.S. trade dialogue. As Beijing seeks both to defend its export juggernaut and to project confidence amid slowing growth, He’s changing public persona and expanded portfolio underscore his newfound prominence in the world’s most consequential economic rivalry.

From Bureaucrat to Deal-Maker

When He assumed his vice-premier post in March 2023, observers noted his formal style, limited English and reluctance to depart from scripted remarks. Over the past year, however, he has held more than 60 meetings with foreign officials and corporate leaders—up from 45 meetings in his first year—demonstrating an increased willingness to engage and negotiate directly. In interviews, several executives credited him with both a clearer grasp of global concerns and an ability to marshal Chinese policy responses quickly when commitments were made.

He’s transition has been striking: once nicknamed “He the Demolisher” for his aggressive urban-renewal projects in Tianjin that prioritized rapid growth despite high debt levels, he now balances that growth mindset with a more consultative approach when dealing with overseas partners. His economic brief encompasses everything from trade policy to financial-sector regulation, making him Xi’s chief lieutenant for maintaining China’s export-led expansion.

In early April, former President Trump announced a broad package of tariffs—145 percent on most Chinese goods, 25 percent on steel and aluminum, and 10 percent on a host of other imports—aimed at redressing the bilateral trade imbalance. Although the Biden administration has hinted at a willingness to de-escalate, the prospect of sustained duties continues to rattle supply chains and slow global growth projections. Institutions such as the IMF and major banks have trimmed China’s 2025 growth forecast to around 5 percent, citing tariff-induced uncertainty and headwinds in the property sector.

In response, Beijing has slapped retaliatory duties of up to 125 percent on U.S. exports, creating a standoff that threatens to ripple across Asian, European and American markets. Against this backdrop, He’s role in coordinating China’s defensive measures—and, potentially, any off-ramp negotiations—has vaulted him into an even more influential position.

He as China’s Trade Tsar

Although Treasury Secretary Scott Bessent has cast doubt on whether President Trump and Xi have convened substantive tariff talks, industry insiders say that any serious negotiation will flow through He. As Xi’s designated trade tsar, He will oversee high-level strategy, while day-to-day bargaining is expected to be led by China’s newly appointed chief negotiator, Li Chenggang. In private sessions, He has listened to foreign delegations’ pleas for clarity on tariff timelines and supply-chain relief, but he has remained firm in defending China’s export-surplus model.

In conversations with U.S. and European business leaders, He has repeatedly argued that China’s export-led growth is essential for job creation and global stability. He rebuffs claims that overcapacity threatens foreign industries, asserting that China’s manufacturing prowess underpins economic resilience worldwide. Critics note he is no policy innovator, but rather an “executor” of Xi’s directives, defending the status quo even as Beijing explores ways to boost domestic consumption.

Engaging Developed Markets

Beyond Washington, He has spearheaded China’s outreach to the European Union and Japan. In March, he hosted the EU’s chief trade commissioner in Beijing, where discussions touched on potential Chinese rollbacks of tariffs on cognac and luxury goods. Next month, He is scheduled to co-chair an economic dialogue in Paris, underscoring Beijing’s bid to protect key export sectors while broadening cooperation in technology and green energy.

He’s portfolio also requires careful management of China’s internal economic strains. The nation faces an ageing population, deflationary pressures and a lingering property slump. In private briefings, foreign investors have praised his nuanced grasp of these challenges: he has articulated plans for targeted stimulus—likely through interest-rate cuts and reduced bank-reserve requirements—while cautioning against broad, untargeted bailouts that could stoke further debt accumulation.

Before He’s tenure, the economic-policy brief was handled by Liu He, a Harvard-educated economist with fluent English and a reputation for handshake deals in the first Trump administration. While Liu negotiated a preliminary trade agreement in 2019, He’s domestic background required a learning curve for international diplomacy. Despite early critiques of his formality and limited interactivity, He now matches or exceeds his peers in hosting candid, solution-oriented discussions—albeit firmly within the bounds of Xi’s strategic mandates.

Business Community Impressions

In interviews, 13 foreign investors and diplomats described He’s evolving style: from reading monologues to offering pragmatic policy clarifications. One technology executive noted that discussions with He in late 2024 felt “more like brainstorming” than monologic briefings. A financial-services CEO said He not only explained tariff rationales but followed up with written guidance on credit relief for banking clients facing cross-border cash-flow disruptions.

He’s rise coincides with shifting U.S. trade policy dynamics. Although the Trump administration announced a 90-day pause on its steepest tariffs, concrete exemptions for key sectors remain elusive. The Biden team has hinted at selective carve-outs, but with midterm elections approaching, any deal could face domestic backlash. In this environment, He’s ability to secure meaningful concessions—or to frame prolonged negotiations as a win for multilateral stability—will be critical.

As China contends with both external trade pressures and internal economic headwinds, He Lifeng’s stewardship of Sino-American relations will be closely watched. His evolving engagement style—balancing staunch defense of China’s trade surplus with a more open, negotiated approach—signals Beijing’s attempt to navigate an unpredictable U.S. policy landscape. Should tariff talks resume in earnest, He will likely orchestrate China’s negotiation strategy, with the success or failure of those efforts bearing heavily on global market sentiment and the broader trajectory of U.S.–China economic ties.

(Adapted from Business-standard.com)

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy