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Yellen began to talk about overcapacity again, as if she thought that smearing the mainland's overcapacity would solve America's current problems. A few days ago, the Biden administration also imposed tariffs on electric vehicles on the mainland, which soared directly to 100%.
In addition to proving the mainland's strength in this field, their actions may only prove that all this is just out of their political calculations, and it is not good for ordinary Americans.
Yellen's American-style double standard
A few days ago, in an interview with her, Yellen started her old rhetoric "China's overcapacity" again, in fact, before that, this word had come out of her mouth no less than 5 times.
Interestingly, when the host asked whether the United States was surpassed by the mainland in the fields of electric vehicles and batteries, Yellen quickly denied it, explaining that the main reason was that she felt that the competition between China and the United States was not fair, and that the mainland had carried out large-scale subsidies in areas that were vital to economic development, such as new energy, electric vehicles, and batteries.
However, the host soon asked rhetorically, the United States has also invested billions of dollars in this area, and in the face of the host's questioning, Yellen defended again, saying that the United States does not want to dominate the fields of clean energy, electric vehicles, batteries and renewable energy, and does not want to be the only country in the world that supplies these products, and also said that they carry out investment subsidies for national security, for the resilience of the supply chain and for the creation of good manufacturing jobs.
This sentence is said as if our country is not for the same purpose, but as if it wants to dominate these fields.
We are not used to Yellen's double-standard remarks, Hua Chunying responded directly: "Translate (Yellen's words): We (the United States) will use subsidies to support American industries, because it is strategic, but when others do this, it is unfair competition." ”
Many Americans couldn't stand it anymore and directly stated that the United States could not play competitive games and began to cheat.
In fact, in the logic of the United States, they are about to lose their markets in other countries and even fail to defend their own local markets, which they do not allow, but they can accept their own products to encroach on the markets of other countries, and call themselves the spirit of free trade.
Moreover, they also hope that the mainland will clearly understand that these tariff measures are only aimed at "narrow targets" and do not want to see a strong response from the mainland.
It means that they are just adding tariffs in areas such as electric vehicles, hoping that the mainland will not mind and will not take corresponding countermeasures.
It's really arrogant and rude, punching someone and hoping that others will be generous and not fight back, how can there be such a practice?
The theory of overcapacity in China is untenable
In the case of Yellen's repeated claims of overcapacity, it is actually untenable.
First of all, what is overcapacity? In a popular sense, it is not that there are too many commodities to sell, but that the production lines built by the manufacturer cannot be used, in other words, the machinery and equipment purchased in the factory are not used.
For example, if a production line can produce 100 products a day, and if it actually produces 90 products, then we say that the capacity utilization rate of the factory is 90%, which is already very high. If only 10 items can be produced a day due to a decrease in orders due to a decrease in actual demand in the market, then we call it overcapacity.
In fact, this is a universal economic phenomenon, and even in the United States, it is impossible to avoid the emergence of this situation, and how to solve it mainly depends on the invisible hand of the market to regulate.
According to the International Energy Agency's calculations, to achieve the goal of carbon neutrality, the global demand for new energy vehicles will reach 45 million in 2030, 4.5 times that of 2022.
At present, the US side is hyping up the mainland's overcapacity for the following reasons.
As we all know, the mainland's new energy vehicle industry has been developing rapidly in recent years, and the United States is largely for the purpose of suppression.
A very important reason is actually that the United States is in the midst of the election, and the "theory of China's new energy overcapacity" can also help the Biden administration to pull votes to a certain extent.
In fact, American politicians know better than anyone else that this is just their anxiety and fear of the development of the mainland's industrial strength, and that restricting Chinese automobiles from participating in the US market competition in the name of protecting the interests of American workers will only make American car companies rest on their laurels and further lose their competitiveness.
In addition, if you want to talk about the mainland's large-scale subsidies for new energy, is it that only the mainland is subsidizing in the world? Europe, the United States, and Japan are not making up for it, and the amount of subsidies is larger than that of the mainland.
Fight back when necessary
This practice of putting political considerations ahead of the interests of other economies can only be described as detrimental to others and not to oneself.
In this case, it is neither China nor the American capitalist class that is hurt, but ordinary American consumers.
First of all, the United States imposes tariffs, which are three or four times more frightening, but in fact the impact is extremely limited, after all, the export of electric vehicles from the mainland to the United States tends to be close to zero, and the export is so small, in the final analysis, the United States has set tariff barriers for Chinese electric vehicles.
Second, the resistance of the United States and the win-win cooperation between the mainland and the mainland will undoubtedly make the transformation of its industrial structure more arduous and protracted in the long run, although local jobs will be preserved in the short term.
Then the mainland is waiting for the United States to bully like this? That's not it, of course.
In response to the additional tariffs imposed by the United States, China directly stated that we have always opposed violations of WTO rules and unilateral tax increases, and we will take all necessary measures to safeguard our legitimate interests.
In other words, the mainland will not wait for you to raise tariffs to harm the interests of mainland car companies, and it will not back down when it is time to punch.
Now that the United States has violated the WTO's most-favored-nation principle, it is really trying to achieve its goals, and it has not recognized any of the commitments it has made before.
Once the policy of imposing tariffs on Chinese electric vehicles becomes an established fact, will Tesla, which has lifted the ban on the mainland and allowed free passage before this, really be able to stand alone? As we all know, Tesla's factory in Shanghai, mainland China, is mainly responsible for the production of automotive products. Therefore, if the models produced by the factory can only be sold in markets outside China or the United States in the future, it will undoubtedly directly lead to a significant increase in Tesla's manufacturing costs.
Rather than grasping the so-called problem of overcapacity, the United States should face up to its own shortcomings.
Information sources:
"Hua Chunying's "translation" of Yellen's defense, in one sentence! 》Globe.com
"Hit the nail on the head! Hua Chunying's "Translation" of Yellen's China-related Remarks" Observer Network
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