President-elect Donald Trump has selected Iowa Gov. Terry Branstad to serve as the U.S. ambassador to China, a transition official confirmed to the Washington Post on Wednesday.
Branstad has called Chinese President Xi Jinping a "long-time friend" and has extensive ties to Beijing, potentially setting the stage for eased trade tensions between the two nations.
The Chinese government welcomed the news of Trump's latest pick, calling Branstad an "old friend."
"We welcome him to play a greater role in advancing the development of China-U.S. relations," Foreign Ministry spokesman Lu Kang told a daily press briefing, Reuters reported.
The Republican governor met with Trump in New York on Tuesday, issuing a statement soon after saying he had a "very cordial conversation" with the president-elect.
"He is putting together a great Cabinet that will serve the American people well," Branstad said of Trump.
Trump's transition team has not yet confirmed reports of Branstad's appointment to the post.