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Preface
On May 14, the United States released the results of the four-year review of the additional Section 301 tariffs imposed on China.
On the basis of the original situation, the United States has been criticized by many parties after the news of the further tariffs on new energy products on the mainland.
This move by the United States is tantamount to "bullying", and what is striking is that Yellen also called on China to respond calmly and not to take countermeasures, and it is no wonder that mainland Foreign Minister Wang Yi will make a rare tough statement.
Why is the Biden administration's trade strategy toward China shifting again? What will be the impact of the tariffs?
In the face of the arrogant actions of the US side, what is Minister Wang Yi's assessment?
1. Impose tariffs and expose ambitions
Previously, the Biden administration has been at the center of the discussion on climate change, and the sudden shift to trade policy with China at this time has a lot to do with the upcoming November election.
Trump's tough trade strategy with China has won him some votes, and Biden has also erected trade barriers to China in order to compete with him, which is equivalent to returning to the same running line with Trump again.
It's just that it's hard to say what the gains and losses of this strategy will be, as the Wall Street Journal commented:
"If this tariff bidding war continues, it will not end well for anyone!"
In his speech on the 14th, Biden pointed out that the reason for the tariffs is to prevent Chinese electric vehicles from entering the U.S. market and create a "level competition" environment for U.S. automakers.
This statement is "in the same vein" as Yellen's previous "China's overcapacity theory".
However, anyone with a discerning eye can see that the core purpose of this move by the United States is not to protect global trade, but to eliminate the competitive advantage of Chinese products and seek living space for its own products.
It is precisely because of the "impure intentions" that this strategy of the US government has been widely criticized by the international community!
In a conversation with the German Chancellor, the Swedish Prime Minister said:
"Tariffs are a bad idea, this move by the United States is destroying global trade, and if we continue to do so, we will only block each other's products and harm the interests of the vast number of industrial countries......"
Indeed, if you can do the first year of junior high school, I can do the fifteenth.
If the trade war really starts, China will never back down, and Yellen may be aware of this, so she said in an interview:
"I hope China will respond in a rational way!"
What is the "rational way"? Doesn't it translate to "don't retaliate, don't impose tariffs on the United States".
The dignified U.S. Secretary of the Treasury has such a double standard in his speech and demeanor, which is really ridiculous.
However, it is not surprising that she can say such things, after all, the United States has not "double standards" once or twice.
2. Reject double standards and clarify the facts
Recently, Yellen also responded positively to the issue of "China's overcapacity" in front of reporters, saying:
"There is no doubt that we will subsidize investments in strategic areas, but we hope that China will not subsidize companies with excess capacity......"
At a press conference on May 14, a reporter put this sentence in front of mainland Foreign Ministry spokesman Wang Wenbin, who bluntly pointed out the absurdity of this sentence -
U.S. subsidies to companies are key areas of investment, while China's subsidies to companies are causing worrying unfair competition.
The export of superior products by the United States to other countries is called free trade, and the export of superior products by China to other countries is called overcapacity.
Isn't it just the state officials who are allowed to set fires, and the people are not allowed to light lamps?
When it comes to "industrial subsidies interfering with the allocation of market resources", the United States is the real "veteran".
The reason why China's new energy products such as lithium batteries, electric vehicles and photovoltaic products can gain advantages is completely dependent on independent competition and market rules.
The tariffs imposed by the United States on the above-mentioned products this time can be regarded as a complete "tearing face".
Taking electric vehicles as an example, the United States was supposed to impose a 2.5% tariff on imported passenger cars, and this time it has raised the tariff rate of Chinese-made electric vehicles to 100%, which means that China's imported electric vehicles will face a 102.5% tax rate!
Such an exaggeration, mainland foreign minister Wang Yi said in an interview:
"This is the most typical bullying in the world, and some people have lost their minds in order to maintain their hegemony!"
The spokesperson of the Ministry of Foreign Affairs of the mainland did not give a clear response to the question of whether China will retaliate, saying only that China will urge the US side to cancel the additional tariffs imposed on China.
In addition, we will take all necessary measures to defend our rights and interests, in fact, the words "all measures" alone are enough to explain our attitude.
Seeing this, some people may ask: Why is the US side "angry" and our side can still "sit firmly in the Diaoyutai"?
In fact, the reason is simple, we are not the "biggest victims" of this incident.
3. Playing with fire and setting oneself on fire and letting go of disputes
According to relevant data, in 2019, only more than 300 pure electric vehicles were exported from the mainland to the United States, with a total export value of less than 3 million US dollars;
In 2022, this data will usher in a surge, and the number of pure electric vehicles exported to the United States will exceed 10,000, which is still just a drop in the bucket compared with the total export of electric vehicles in the mainland.
In fact, the export of mainland trams does not depend on the US market, and the US "tariff strategy" in this regard cannot bring us much loss;
On the contrary, the United States has abused trade protectionist measures, not only tarnishing its own image, but also "pitfalling" its own consumers.
We know that it is not only electric cars that are subject to tariffs, but also American consumers who actually pay this part of the fees after the mainland-related products are sold in the United States.
According to Moody's estimates, American households need to spend thousands of dollars a year on this!
There are many more similar figures, CNN pointed out that American consumers have paid more than $2,000 for the tariffs imposed by the Trump administration;
The Washington Post also said that the tariffs cost the United States nearly 200,000 jobs and $70 billion in annual production value each year.
To sum up, the U.S. strategy of imposing tariffs is undoubtedly stupid because it contradicts the government's economic policies, as Harden, vice president of the American Retail Association, pointed out in a May 14 article:
"In the end, it is American companies and consumers who pay for everything, and this decision of the Biden administration is undoubtedly insulting to our ......"
Americans still say this, let alone people in other countries, and when I think of Yellen's "China's overcapacity theory", I can't help but feel ironic and ridiculous.
Where is the excess capacity in China? It is clearly the anxiety of the United States' lack of self-confidence and the various smears against the mainland!
Resources
"Piercing the Double Standard! Hua Chunying's translation of Yellen's remarks like this Guangming Daily
"The United States imposes tariffs on China, and many parties refute it", Global Times
"The United States abuses protectionism to impose tariffs on China, and American companies and consumers lie down with guns" CCTV News