Because Branstad always meant to serve only one term, his departure was expected, according to multiple administration officials and people familiar with his thinking.
Terry Branstad will be stepping down as United States Ambassador to China after more than three years in Beijing, a source confirmed to CNN Monday.
"[It shows] Beijing's hypocrisy when it complains about lack of fair and reciprocal treatment in other countries", Mr Pompeo said.
Trump said Branstad would return to the U.S. while praising the campaign efforts of the ambassador's son, Eric Branstad.
China's Ministry of Foreign Affairs - while acknowledging Pompeo's tweet - said it had not received notice of his resignation.
The statement said Branstad had thanked embassy staff in Beijing on Monday, quoting him as saying he was, "proudest of our work in getting the Phase One trade deal and delivering tangible results for our communities back home".
Chinese foreign ministry spokesperson Zhao Lijian said that Mr Branstad's article was "full of loopholes, seriously inconsistent with facts and wantonly attacks and smears China".
In a statement, the U.S. Embassy in Beijing said Branstad would "retire from his position as U.S. envoy and depart Beijing in early October".
"We are rebalancing the U.S". That approach has since fallen by the wayside, with US officials like Pompeo calling engagement a failed strategy.
Branstad, a former Iowa Republican governor who has served as ambassador to China since 2017, confirmed his decision to leave the position in a phone call to President Trump last week, according to a news release from the embassy.
In response, Secretary of State Pompeo accused People's Daily of "hypocrisy", saying that if the Chinese government was a mature power, it would "respect the right for Western diplomats to speak directly to the Chinese people".