He Lifeng, China's trade tsar, is at the forefront of US tariff discussions

He Lifeng, a trusted confidant of Chinese president Xi Jinping, who has gradually built a reputation as a fixer among foreign investors, will be at the forefront in Saturday's talks aimed at resolving a deadlock on trade with the United States.

After weeks of escalating trade tensions, the vice premier of Canada will meet with U.S. Treasury Sec. Scott Bessent in Switzerland and Jamieson Greer as chief trade negotiator.

He is the person who oversees U.S. China economic and trade relations.

We interviewed 13 foreign diplomats and investors who met He in the last year. The interviewees described He's transformation from a Communist Party apparatchik who spoke no English and was reluctant to deviate from his prepared remarks to a confident man with a greater ability to accomplish things.

According to an American businessperson who was briefed about the meetings, He impressed many of the leaders of some the world's biggest companies when they flocked to Beijing last month for a forum.

The majority of people who spoke to He on the condition of anonymity did so in order to discuss their confidential interactions with him, He also has a vast regulatory oversight of China's sprawling finance sector.

According to the'review of his public engagements, the vice premier held at least sixty meetings with foreigners over the last year. This is a steady rise from the 45 meetings he had between March 2023 when he became vice premier and March 2024.

The Chinese State Council has not responded to a request by fax for comments on the talks.

DÉFENDER STATUS QUO?

Many of the interviewees said that despite the vice-premier's increased comfort in engaging with Western executives he was not an innovator.

According to a businessperson who was briefed on last month's meeting, the vice premier's improved reputation among American executives is likely due to the fact that Chinese leaders seemed especially confident and predictable in the aftermath of the chaos in the U.S.

In meetings with foreigners, he has repeatedly defended Beijing’s export-led strategy of growth.

One American businessperson said that He, a supporter of boosting domestic consumption over manufacturing, is Xi's chief lieutenant in building a trillion dollar surplus.

Three people said that he had, at times, repeatedly dismissed complaints about Chinese overcapacity. These are also shared by other countries Beijing is courting to find new ways of cooperation and export pressure valves.

Wen-Ti Sung is a senior fellow with the Global China Hub of the Atlantic Council. She said that He would defend China's surplus on a daily basis. It's difficult to imagine He compromising on the trade deficit, a key issue for China's job-creation.

The vice premier was at the forefront of China's recent outreach efforts to developed markets such as Japan and the European Union that were also affected by Trump's tariffs.

He will then travel to France, where he will hold a high level economic dialogue.

UNDERWHELMING START

Liu He was the former head of the economics portfolio before He assumed his current position. A Harvard-educated English-speaking economist, Liu He negotiated a free trade agreement with the United States under the first Trump administration.

The vice premier may have a Ph.D. in economics from Xiamen University but his domestic focus meant he had to learn a lot in order to be China's economic face in the world.

According to a person who was present, some American executives were not impressed by He when he briefed on the results of an important economic policy meeting in July last year.

A person claimed that the vice-premier, who according to party conventions, should retire in 2027 looked a little sluggish at the briefing where he had dozens of aides flanking him.

He's predecessors, such as Liu and Wang Qishan were known to foreign interlocutors because of their eloquence, and a relatively informal demeanor.

After a Japanese delegation raised concerns in February about Beijing's controls on rare earth exports and the safety for Japanese nationals living in China, the vice premier downplayed these issues.

Businesspersons briefed about He's meetings in March described previous discussions with the vice-premier as "talking to ChatGPT." He said that the Chinese official has started communicating in a more Western-friendly way.

This person, who met He several times, was impressed by He's ability, in a manner that officials not close to Xi could not, to explain Beijing’s economic policy, and to deliver on his promises of assistance. The source didn't provide any specifics.

A second foreign official, who also met He in this year, said that the vice-premier was well aware of China's problems. These include deflationary forces and an aging population on top of tariffs and the real estate crisis. He provided a sophisticated assessment of these issues.

The official also said that he appeared to be very confident in the prospects of Deepseek, a homegrown AI startup.

"TYPICAL BUREAUCRATS" AND DEMOLISHER

In his native Fujian Province, Xi began to build his power as a local official during the 1990s and the early 2000s. Around that time, he became a trusted ally of Xi and attended his wedding.

In 2009, the official was transferred to Tianjin, a port industrial city. Locals nicknamed him "He the Destroyer" for launching a massive urban renovation campaign and costly infrastructure projects which gave the city an attractive facade but also pushed it further into debt.

Alfred Wu, an expert on China at National University of Singapore said that He was focused on boosting the economy and "was particularly big on real estate and city redevelopment like many local officials of the time."

Wu, who met He as a reporter in Fujian, called the official a "typical bureaucrat" and a "very typical protege of Xi Jinping."

He added that his "number-one priority" is to implement Xi’s directives. This puts him in a more subordinate position. Reporting by Laurie Chen and Michael Martina, in Beijing; Additional reporting from Goh Kui Qing, in New York; Editing done by Katerina Ange, John Geddie, and Shri Navaratnam.

(source: Reuters)