China trade negotiator He Lifeng won’t be easy to deal with

WSJ China reporter Lingling Wei is out with a notable profile on Chinese Vice Premier He Lifeng, who is leading trade negotiations with the US. She contrasts his hardball style with the pragmatic Liu He, who negotiated during Trump’s first term.

“Liu He was too nice,” said a Chinese official who participated in some of the U.S.-China discussions during Trump’s first presidency. “He Lifeng is different.”

That stance is a problem for a market that wants/hopes to see trade tensions steadily dwindling in the remaining years of Trump’s term. The US has floated a call between Trump and Xi this week as a potential breakthough after some issues entered talks but it’s not clear it will happen.

In Xi’s view, the people who consult with Chinese officials said, China overall is more prepared and self-sufficient than during the trade war the two countries fought in 2018 and 2019. And the Chinese leader has readied a team to take a tougher stance this time.

Notably, the report also frames the prior ‘Phase One’ trade deal during Trump I as a continuation of the unequal ‘century of humiliation’ type of deals.

On the upside, the article does lay out a path to some kind of repeat of the Phase One deal that would see China committing to buy US products as a path towards stability between the superpowers. What’s clear though is that China wants something in return.

This article was written by Adam Button at www.forexlive.com.