China names new trade envoy as US tensions rise; India's gains uncertain

China has appointed a new lead negotiator for international trade talks amid escalating with the United States, even as India’s once-promising trade dynamic with Washington enters a phase of caution and uncertainty under the re-imposed tariff regime by President Donald Trump.

Beijing announced the appointment of Li Chenggang as the country’s new international trade envoy, replacing Wang Shouwen, a key figure in the 2020 US–China trade accord.

Li, a veteran diplomat and trade strategist, previously served as China’s ambassador to the and has held senior roles in the ministry of commerce. His appointment signals a recalibration of Beijing’s global trade posture at a time when show no signs of easing.

The US has significantly raised import duties on Chinese goods — up to 145 per cent in some sectors — prompting China to retaliate with tariffs of up to 125 per cent on American exports

Adding to the friction, Beijing has tightened export controls on critical rare earth materials, vital to sectors such as aerospace, defence and advanced electronics.

Despite posting a strong 5.4 per cent GDP growth in the first quarter of 2025 — driven largely by robust exports — China faces mounting pressure from the latest American tariffs.

While officials maintain that long-term growth remains on track, analysts caution that external headwinds will likely slow momentum in the coming months.

Meanwhile, India finds itself in a difficult position with respect to the US.

Although 2024–25 marked the fourth straight year of the US being India’s largest trading partner, recent developments signal that this may have been the peak rather than a sign of further growth.

India recorded a bilateral trade volume of USD 131.84 billion with the US during the last fiscal year, with a healthy trade surplus of USD 41.18 billion. But this data now belongs to the past — before the Trump administration re-imposed tariffs affecting a wide range of imports from India.

With Washington adopting a more protectionist stance, India’s earlier export gains — especially in pharmaceuticals, telecom, gems and jewellery, and petroleum products — face fresh uncertainty.

While the two countries had previously discussed expanding trade to USD 500 billion by 2030, that ambition appears increasingly distant in the current policy climate.

At the same time, India's trade relationship with China remains lopsided.

In 2024–25, India's exports to China fell by 14.5 per cent to USD 14.25 billion, even as imports rose by 11.5 per cent to USD 113.45 billion, widening the trade deficit to USD 99.2 billion — a year-on-year increase of 17 per cent.

China remains India's second-largest trading partner, but the imbalance continues to deepen.

As global trade dynamics harden, both China and India are recalibrating their approaches.

While China banks on internal consumption and alternative markets and , India is now in a with the US, as the Trump administration’s tariff-first policy puts earlier trade momentum on hold.

With PTI inputs