On September 24, local time, U.S. Finance Minister Bessent stressed in an interview with the media that the U.S. is not a passive party in economic and trade negotiations with China, but still holds the code. He listed a number of Chinese products that rely on the U.S. in imports, including aircraft engines, parts, some chemicals and plastics, silicon materials and so on.
His logic is simple, that these supply chain control points make the U.S. capital hard on the table. He even pointed to the issue of access to the IPO market, pulling the issue into the financial capital market as a potential negotiation point. These statements sound like a signal to the outside world that the U.S. is not going to completely fall in the game.
According to some analysts, the use of aircraft engines and other examples by Bessent is not accidental. Civil aviation engines are currently one of the biggest technological fields between China and the United States, and the United States and the West have long dominated the global civil aviation engine market. In the past, U.S. sanctions on Iran, Russia and other countries were also mainly based on the restriction of this area to pressure.
But the problem is, the times and environment have changed. China is accelerating its independent research and development of large aircraft and related supporting equipment. Although there is still a technical gap in the short term, its dependence on the United States is gradually declining. This move by the United States is more of a "habitual thinking" and wants to play it again in the old way. China has long considered this risk, so the control measures of rare earths and key raw materials have taken shape, which is to ensure that it maintains strategic initiative in core interests. In other words, the two sides take chips with each other, but who can hold back the pressure better is the key.
So, in the face of the threat of the U.S. Finance Minister, the Chinese side quickly reacted. On September 25, the Chinese Ministry of Commerce announced that six U.S. enterprises were included in the export control and unreliable entity list, covering military, engineering, science and technology and other fields. It is worth noting that the Chinese side is not without arrows, but sanctions initiated in accordance with the law. Huntington English Industrial Company, Flat Earth Management Company, Global Dimension Company were included in the export control list, prohibiting exports involving two-purpose items.
China's position is also very clear. These companies have long been confronting China's position on the Taiwan Province issue, involving military and technical cooperation, and touching China's core interests, so they must pay the price. China remains open to other foreign companies that abide by laws and regulations, but it will never be soft on those who step on the line.
Some analysts pointed out that on the one hand, China's actions have shocked illegal enterprises, and on the other hand, they have also released a stable signal to the international community: companies that obey the rules need not worry and can continue to do business in the Chinese market. This is a typical example of "striking the minority and appeasing the majority", so that China can still maintain the image of a responsible big country while ensuring the continuity of economic cooperation. At the same time, this set of "distinguishing boundaries" practice not only responds to the so-called chip argument of the US Treasury Secretary, but also shows the bottom line of China's response to external pressure.
Looking back at this confrontation, the U.S. finance minister said that there was a code, and the Chinese side immediately responded with practical action, pulling six U.S. companies black. This comparison is very intuitive. On the one hand, it is the talk and the gesture, on the other hand, the specific measures are grounded. The logic of international relations is this, the mouth screams again, rather than the direct outcome of more quantity.
From a long-term perspective, the friction between China and the United States will not disappear, negotiations and confrontations will be intertwined for a long time. On the one hand, the two sides will show the bottom line in the confrontation, and on the other hand will have to maintain a certain degree of cooperation, which is the reality. China's strategy is clear, the open doors will not close, but the core interests are absolutely not concessions. The United States wants to increase the negotiating advantage through various codes, but China also has its own toolkit.
It can be predicted that there will be several rounds of confrontation between the United States and China in the coming months. Tariffs, rare earth, chips, energy are all unavoidable topics. The United States wants to squeeze China at the negotiating table, but China also has cards to play in its hands. Especially in the issue of rare earth and supply chain security, China’s advantages are real and not verbal. As Chinese laws and policies continue to improve, precise measures against specific companies will also become a normalizing tool. This can both avoid comprehensive conflict and ensure that core interests are not eroded.
After all, the U.S. finance minister's speech is more of a gesture, China's action is a real hammer. Rare earth, engines, chips, these are all key points in the future game of the Sino-U.S. Both sides are bright, but who can withstand the pressure, who can stand on the negotiating table more stable. China through this six U.S. companies, the attitude is very clear: not afraid of confrontation, but also willing to cooperate. For future Sino-U.S. relations, this is the most real picture.