Sanctions on new energy vehicles are not enough, United States and China's "three jumpers" launched a double anti-dumping investigation, 130,000 orders of Chinese enterprises or not guaranteed, United States insisted on killing them all, can China find a way to crack?
Even the "three jumpers" were sanctioned, and United States rushed to exterminate them
Low-speed manned vehicles, commonly known as "three jumpers", are small electric vehicles used to drive at low speeds on rural and urban roads. Its popularization has facilitated people's production and life, liberated the labor force, and allowed consumers to have more time to engage in other work. However, it is a pity that the United States has set its sights on China's dominant industries and is ready to make a dead move.
On July 11, the United States Department of Commerce announced the launch of an anti-subsidy and antidumping investigation against low-speed passenger vehicles imported from China. Once the United States determines that Chinese products have caused damage to the relevant industries in the United States, the United States will take measures such as imposing punitive tariffs, fines, and even blacklisting.
Why does the little-known "Three Jumpers" attract such a high level of attention? This is actually related to China's industrial layout.
To put it simply, low-speed passenger vehicles produced in China are mainly sold to North America, Asia-Pacific, the Middle East and Europe, accounting for at least 95% of the overall exports, and the number of electric vehicles exported by China to golf courses and other venues in the United States alone will reach 135,800 units in 2023, with a value of 440 million US dollars.
Leaving the United States market, China's "three jumpers" industry will suffer a major blow, which is one of the clear signals released by the United States Department of Commerce. For this reason, China-related companies may have to prepare early to avoid their own containers being stranded in United States ports after the preliminary ruling of the United States on August 5.
United States sanctions are addicted, and China needs to find a way to crack it
Let's make a few comments based on the above facts.
First, the model of low-price competition will not work, and enterprises will have to transform if they do not transform.
Some people may say that Chinese companies have a big deal to adjust and sell the "three jumpers" rejected by United States to China. The fact is that domestic demand is limited, and in the absence of new customers and the production line cannot be contracted in time, there will be overcapacity, triggering a brutal price war.
It should be known that the official minimum price of light electric tricycles generally used to pull goods in China is only more than 3,000 yuan, and the quality is very good. We can't help but ask, occupy the market at such a low price, where is the profit point of enterprises, and it is no wonder that Western counterparts spit out China's production capacity, after all, Chinese companies offer price wars, and basically foreign companies will die.
Second, the United States has grasped China's sore spots, making China's small and micro enterprises more and more uncomfortable.
To be honest, the scientific and technological content of the "three jumpers" is not high, Viet Nam, India, Indonesia, and Mexico all have the opportunity to replace China, which is doomed, once the United States to Chinese small and micro enterprises to die, there will be some Chinese enterprises in order to make a living, "go away", open production chains in other countries.
In the end, taxes and jobs are given to other countries, and Chinese companies only get a small profit, which can be said to be disproportionate to the return. Therefore, don't underestimate the consequences of United States escalating the trade war, and don't always look at the United States of decline, which will have a profound impact on the transformation of China's related industries.
Third, China must think of countermeasures to make United States jealous and tear China's face.
It is proposed to reduce or simply ban the import of wheat, corn, soybeans, and natural gas from United States, and leave at least 750,000 people in United States unemployed. China is the world's largest consumer of grain and agricultural products, but if China no longer opens its doors to United States, the farmers of the United States will explode.
Because grain is different from ordinary industrial products, its storage conditions are harsh and the storage time is limited, as long as the Chinese side firmly holds the "Chinese rice bowl", then the United States will have nothing to do. The United States may think that resource-poor countries such as Egypt and Ethiopia will absorb this part of the production capacity, but it has proved that the limited markets of these countries cannot replace the food needs of the 1.4 billion Chinese.
Fourth, China must be mentally prepared to decouple from United States.
In the first half of the year, China's trade data between China and the United States was released, China's exports to the United States were 1.71 trillion yuan, an increase of 4.7 percent, and imports from the United States were 577.97 billion yuan, a decrease of 2 percent, and China's trade surplus with United States continued to expand. As we all know, exports far exceed imports, which will definitely trigger a backlash from the countries concerned.
Reflected on the consumption side: China's domestic deflation, United States domestic inflation, United States will do everything possible to block the way for Chinese goods to go overseas in order to balance the trade deficit. Therefore, the "three jumpers" of Chinese production are just a microcosm of the intensification of the Sino-US trade war, and more unexpected things will happen next.
The only solution is to raise the incomes of Chinese citizens and make Chinese consumers work hard to absorb excess industrial capacity, otherwise the joint strangulation of China by the United States and the West will trigger a wave of large-scale unemployment and layoffs. Considering the background of the game between China and the West, it is speculated that the relationship between China and the United States will only become more and more frozen, until the tipping point of decoupling.
If Chinese enterprises want to survive, they may take the route of low-price competition, and United States also needs to protect its own industry, and how to strike a balance between the two will test the mediation ability of the Chinese and US ruling layers. What we want to say is that the United States is determined to launch a double-dumping investigation into China's "three jumpers", and there will definitely be results.
The vast number of "three-jumper" enterprises must establish a sense of crisis from now on, and must find emerging markets other than United States; of course, if China and the United States reach a compromise, it is best to be afraid that United States will lose its heart and attack more industries in China.