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The U.S. sanctions against China are becoming more and more violent, and the Biden administration is not only ruthless in tariffs, but even Yellen hopes that China will "not fight back". What is the reason behind this? Next, let's talk about the chess game and logic that may be hidden behind this, and see where this contest between China and the United States will eventually go.
The U.S. government's announcement of punitive tariffs of up to 100 percent on imports from China on new energy vehicles and photovoltaic panels and other products is undoubtedly a major blow to China's high-tech industry. The Biden administration's move is obviously to completely block the access of Chinese products to the US market. Faced with this situation, you may ask, why is the United States doing this?
The United States clearly understands that the new energy vehicle and photovoltaic industries are China's areas of strength, and these are the key points that the United States wants to contain in the Sino-US technology war. Although Biden had previously intended to ease Sino-US relations, the strategic consideration of the United States is obviously to maintain competition and avoid the deterioration of relations between the two sides to an uncontrollable extent.
What is China's response? Rather than back down, China has reportedly hoarded gold, oil and grain on a massive scale over the past two years. According to the data, by the fourth quarter of 2023, China's gold reserves have reached 2,262 tons, and oil imports have also increased significantly, especially from Russia to 19%. As for grain, China is said to have nearly half of the world's reserves.
This large-scale strategic reserve is not only for economic security, but also in preparation for a larger-scale economic or political conflict. In the grand chess game of international politics, this approach can be seen as China's preparation for the worst, and at the same time as a powerful response to US pressure.
And then there's Yellen's statement, in which she expects no major reaction from China. This rhetoric, which appears to want to remain calm, is actually a message that the United States is taking tough measures in the hope that China will exercise restraint. But this expectation is obviously somewhat out of touch with reality. In fact, China's response is already beginning to be felt at all levels, from economic to diplomatic, and it is actively preparing for possible further conflict.
At this point, we can see that this contest between China and the United States is not just a simple trade war, but a confrontation involving deeper national security and strategic layout. This tension between the two economies not only affects the economic development of the two countries, but is also part of the global political and economic landscape.
epilogue
This new round of confrontation between China and the United States is not only limited to trade and economic fields, but is also part of the game between the two countries in their global strategy. Although the United States ostensibly wants to maintain the stability of competitive relations, it has actually cracked down on China through measures such as high tariffs. China, for its part, has responded by increasing its strategic resource reserves, demonstrating its determination not to succumb to external pressure easily. The interaction between China and the United States will be more complex, but in any case, maintaining strategic focus and strengthening their own strength will be the key to addressing international challenges. This chess game is far from over, and we will wait and see how this great power game will unfold in the future.