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The United States has fired another shot at China, and no, it has imposed a thick layer of tariffs on China's electric vehicle and semiconductor industries. This time, not everyone could have imagined that on the basis of Trump's policies, Biden added another fire. But things developed a bit unexpectedly for Biden, who originally thought it was a beautiful uppercut, but didn't expect to punch himself in the face. Not only did the allies not buy it, but even the United States' own "backyard" was on fire. What's going on? What is the meaning behind this series of actions of the United States? Let's lift the fog today and see the story behind it.
In May, the U.S. government announced tariffs on $18 billion of Chinese goods, mainly for electric vehicles and semiconductors. Although this policy is an increase on the basis of the Section 301 tariffs during the Trump era, the Biden administration's move is obviously to go further on economic and trade issues with China.
To put it bluntly, the United States wants to keep Chinese electric vehicles out of the door, and tariffs on semiconductor products have been raised from 25% to 50%. But it seems that this trick of the Biden administration does not seem to be so popular. Not only because it looks a bit like going down the old path of old Trump, but also because this "suppression of competitors" approach has also made some of America's allies start to resent it.
In response, the Chinese Foreign Ministry can be said to have been swift and resolute. Foreign Minister Wang Yi's "can't" triple attack pointed out the unreasonableness of the US move. Wang Yi said that this approach of the United States cannot prove its strength, solve its own problems, and still less prevent China's development. Wang Yi's remarks are not only a diplomatic riposte to the United States, but also a demonstration of China's determination and self-confidence in the international community.
And it's not just China that is fighting back, but some of America's traditional allies are also starting to take a stand. Germany and Switzerland made their position clear almost immediately that they would not follow in the footsteps of the United States in imposing tariffs on Chinese electric vehicles. The speeches of the German Chancellor and the Swiss Prime Minister undoubtedly gave China a strong support, but also made the United States feel isolated.
America's backyard is not idle. Peru's actions are particularly noteworthy, as the Peruvian agriculture minister's public statement mentions that their president will visit China to discuss economic and trade cooperation, including beef exports. This suggests that even the traditional circle of influence in the United States is beginning to seek closer cooperation with China.
And US Treasury Secretary Janet Yellen's attitude is even more interesting. On the one hand, it claims that this is to protect American companies and workers from rising prices, and on the other hand, it hopes that China will respond "rationally". This kind of contradictory rhetoric not only failed to convince audiences at home and abroad, but made people feel anxious and at a loss. U.S. policy is clearly a gamble on whether it can force China to make concessions by increasing tariffs without hurting its own economic interests. But as things stand, the gamble doesn't seem to be going well.
Not only that, but the U.S. move has also triggered a series of domestic chain reactions. Industries such as solar panel modules in the U.S., although excluded from the tax hike, look like the U.S. is considering its own clean energy strategy and commercial interests. But in reality, it also exposes the short-sightedness and contradiction of US policy. On the one hand, it wants to suppress China's high-tech development, and on the other hand, it cannot completely get rid of its dependence on Chinese products, which has caused a lot of controversy and thinking in the United States.
In fact, the decision to impose tariffs this time is not only an economic issue, but also a political one. With this year's presidential election approaching, the Biden administration is clearly trying to gain some domestic support through a hardline China policy. But it's still unclear whether this strategy will work. After all, the immediate consequence of such a policy could be a loss for American consumers and businesses, as the tariffs are likely to be passed on to American consumers eventually.
From a broader perspective, this series of actions by the United States against China is undoubtedly a bombshell dropped on the global economic and political landscape. In today's in-depth development of globalization, the economic policies of any country cannot be isolated and will have a far-reaching impact on other countries. Such a unilateral approach by the United States may not only disrupt global supply chains, but also trigger countermeasures by other countries, ultimately leading to further fragmentation and instability in the global economy.
epilogue
The U.S. tariffs on Chinese goods appear to be trying to protect domestic industries and jobs, but in fact they may be a political game. This approach has not only disappointed America's allies and neighbors, but also raised questions about the true intentions and global leadership of the United States. Against this backdrop, it is a big question mark whether the United States will be able to achieve its desired goals through such a policy. This is undoubtedly another test for China, and how to maintain a steady economic development and international status under such pressure will be a major challenge for China.