The U.S. Embassy in China announced his departure on Monday. Branstad, who will step down in late October, has been praised for his work on the "rebalancing" of the U.S.-China relationship.
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“I am proudest of our work in getting the Phase One trade deal and delivering tangible results for our communities back home," Branstad, 73, said in a statement. "Our goal remains meaningful, measurable results for American families. We have made significant progress and we will not stop pressing for more.”
"Ambassador Branstad has contributed to rebalancing U.S.-China relations so that it is results-oriented, reciprocal, and fair," Pompeo wrote on Twitter. "This will have lasting, positive effects on U.S. foreign policy in the Asia-Pacific for decades to come."
Trump had hinted that Branstad would be playing a role in the last leg of his campaign. The ambassador's son, Eric Branstad, is already working on the campaign.
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"Eric's father is coming home from China because he wants to campaign," Trump said during a call with Sen. Joni Ernst, R-Iowa, that was posted on social media.
Branstad started the role in June 2017.
“Governor Branstad’s decades of experience in public service and long-time relationship with President Xi Jinping and other Chinese leaders make him the ideal choice to serve as America’s Ambassador to China,” Trump said in a statement at the time.
Branstad first met with Chinese President Xi Jinping in 1985, when Xi, then a provincial agricultural official, visited Iowa.
The Associated Press contributed to this report.