China has removed Li Chenggang, its Permanent Representative to the World Trade Organization (WTO), from his post, according to an announcement from state news agency Xinhua on Monday. The decision comes only days after US Treasury Secretary Scott Bessent publicly referred to Li as “unhinged” during an interview with CNBC.

During a diplomatic visit to Washington in August, Li reportedly warned that “China would unleash chaos on the global system if the US went ahead with our docking fees for Chinese ships,” according to Bessent.

Bessent later described Li’s conduct during the talks as “slightly unhinged,” remarks that drew significant media attention and speculation over their diplomatic implications.

When questioned about the timing of Li’s removal, China’s Ministry of Foreign Affairs told AFP that the decision was a “routine personnel change,” and not linked to Bessent’s remarks.

The Xinhua report listed Li’s removal among several ambassadorial and diplomatic appointments, without providing further explanation.

Despite the reshuffle, Li retains his other key positions as China’s International Trade Representative and Vice Minister of Commerce.

Li led a high-level Chinese delegation to Washington in August for trade discussions, during which he emphasised the need for “equal dialogue and consultation” between Beijing and Washington, according to the Chinese Ministry of Commerce.

The talks were part of ongoing efforts to stabilise relations between the world’s two largest economies, which remain embroiled in escalating trade tensions.

China and the United States announced over the weekend that they would resume trade negotiations in the coming week, signalling cautious optimism for easing tensions.

However, the relationship remains strained following Beijing’s recent decision to impose sweeping export controls on rare earth minerals, which are critical to global manufacturing.

In retaliation, US President Donald Trump threatened to impose 100 percent tariffs on Chinese imports.

Additionally, reciprocal port fees have further intensified the dispute. Last week, Beijing enforced “special port fees” on US vessels docking in Chinese ports, mirroring Washington’s similar policy introduced in April.

Despite official claims of routine diplomatic reshuffling, Li Chenggang’s removal from his WTO post arrives at a sensitive juncture in US–China trade relations, underscoring the growing fragility and high-stakes diplomacy between the two global powers.