Japan said that the United States has clearly misjudged China's counteraction!October 11, the Daily News Network said why this time China's hand is very heavy, a fundamental reason is that the United States strengthened the 50% rule of the "entity list" penetration principle at the end of September, this rule may affect the export of thousands of Chinese companies.
The "50% rule" formulated by the United States is based on the outdated idea that China will not strongly counter-attack, but judging from the results, this is a serious misjudgment by the United States.
First, it should be clear what this “50% rule” is, this rule has already existed, but at the end of September, the United States intentionally strengthened its principle of transparency, previously only concerned with those Chinese companies directly included in the “entity list”, American companies can not do business with them.
Now it is different, as long as a Chinese company is drawn into the list, its subsidiaries, parent companies and even affiliated companies, as long as it has 50% of American technology or American capital, all must be regulated, American companies deal with these companies must apply for permission, and basically are rejected, equals to directly break the path of cooperation.
This network is large, the Daily News said that there are several thousand Chinese enterprises directly affected, from high-tech chips, robotics enterprises, to heavy trucks, kitchen furniture, almost half of the export industry.
In terms of China's electric truck industry, the United States intentionally added 25% tariffs, it is looking at this field, feeling that it can shake the export path of China's new energy industry.
The U.S. dared to do so, all based on a set of outdated ideas.They also thought that China could not play away from the U.S. technology and market, and thought that China would be as tolerant as before, at most symbolically adding a few tariffs, not daring to move the truth.
After all, during the trade friction in 2018, China's counterattack was mainly concentrated in the field of agricultural products. The scope was not so wide and the intensity was not so strong. The United States regarded this as evidence of China's "weakness."
But they did not see China's change in the past few years, now China has long been not only passively beaten.The key industrial materials, the world's 87% of rare earth processing, 78% of lithium processing, 65% of uranium processing are in China, the United States wants to make electric vehicles, engage in high-tech equipment, can not be separated from these materials.
There is also manufacturing strength. Last year, Chinese factories installed nearly 300,000 industrial robots, more than other countries in the world combined. The United States only installed 34,000, and most of them were imported from Japan and Europe. China's industrial resilience has long been It's not what it used to be.
Not to mention the size of China's market. American farmers and technology companies all point to the Chinese market to eat. These areas that the United States itself depends on, they naively think that China dare not touch.
But the facts hit the face of the United States, and China's counter-reaction came quickly and harshly, and directly struck the pain of the United States.
First, the Ministry of Commerce, for all ships carrying American elements to charge special port charges, whether it is a ship made by the United States, or a ship operated by a US company, as long as you enter the Chinese port, you have to pay more money, this shakes the life of the U.S. shipping industry, to know that the United States has a large number of goods each year by ship in China, this additional cost to the U.S. shipping enterprises.
This was followed by countermeasures against American agricultural products. In the past, China imported a large amount of American soybeans and sorghum every year. Now it directly imposes high tariffs and reduces purchases. The soybean prices of American farmers have been falling all the time. Many people drove tractors to Washington to protest, but it was useless.
More critical is the export control card. China has directly tightened exports of key minerals such as rare earths, gallium, and germanium. These materials cannot be made by the United States itself and cannot find a substitute supplier in a short period of time.
Take American electric vehicle companies as an example. 78% of the lithium processing materials in batteries come from China. As soon as China imposes restrictions, the production capacity of these companies immediately drops, and orders cannot be delivered until next year.
There is also the chip industry in the United States. Almost all gallium materials needed to manufacture chips are exported from China. As soon as the control was released, the stock prices of several major chip companies in the United States fell by more than 10% that day.
China also put out a list of unreliable entities, listing those American enterprises that helped the United States to engage in technological blockade, these enterprises not only can not enter the Chinese market, even Chinese raw materials are not used, some American technology companies because of being included in the list, China's market income was directly reduced by 34%.
Only then did the United States realize that it had caused a big disaster. The so-called "50% rule" did not defeat China companies, but instead deceived itself first. China companies no longer rely solely on the U.S. market. In recent years, they have been exploring new markets such as ASEAN and Latin America. The proportion of exports to ASEAN has increased from 10% to 15%. Even if there are fewer U.S. orders, business can still be done.
But U.S. enterprises can not be separated from China, China's special port charges have increased U.S. shipping costs by 20%, agricultural products can not be sold out only ruined in warehouses, high-tech enterprises because of the lack of materials are forced to reduce production, these losses combined are not a small number.
Worse is the domestic prices in the United States, after China's kitchen furniture was added 50% tariff, the price of cabinets in the U.S. supermarket has almost doubled, the cost of ordinary people to buy food and cooking is much higher, inflation pressure has risen again.
In the end, the misjudgment of the United States lies in not seeing the reality clearly, and holding on to decades of obsolete ideas, thinking that China can compromise by technological blockade and trade suppression.
They forgot that China had saved the counter-attack money in the early years, the processing advantages of key minerals, the huge domestic market, the diversification of export channels, all are counter-repression.
The "50% rule" formulated by the United States is based on the outdated idea that China will not strongly counter-attack, but judging from the results, this is a serious misjudgment by the United States.
First, it should be clear what this “50% rule” is, this rule has already existed, but at the end of September, the United States intentionally strengthened its principle of transparency, previously only concerned with those Chinese companies directly included in the “entity list”, American companies can not do business with them.
Now it is different, as long as a Chinese company is drawn into the list, its subsidiaries, parent companies and even affiliated companies, as long as it has 50% of American technology or American capital, all must be regulated, American companies deal with these companies must apply for permission, and basically are rejected, equals to directly break the path of cooperation.
This network is large, the Daily News said that there are several thousand Chinese enterprises directly affected, from high-tech chips, robotics enterprises, to heavy trucks, kitchen furniture, almost half of the export industry.
In terms of China's electric truck industry, the United States intentionally added 25% tariffs, it is looking at this field, feeling that it can shake the export path of China's new energy industry.
The U.S. dared to do so, all based on a set of outdated ideas.They also thought that China could not play away from the U.S. technology and market, and thought that China would be as tolerant as before, at most symbolically adding a few tariffs, not daring to move the truth.
After all, during the trade friction in 2018, China's counterattack was mainly concentrated in the field of agricultural products. The scope was not so wide and the intensity was not so strong. The United States regarded this as evidence of China's "weakness."
But they did not see China's change in the past few years, now China has long been not only passively beaten.The key industrial materials, the world's 87% of rare earth processing, 78% of lithium processing, 65% of uranium processing are in China, the United States wants to make electric vehicles, engage in high-tech equipment, can not be separated from these materials.
There is also manufacturing strength. Last year, Chinese factories installed nearly 300,000 industrial robots, more than other countries in the world combined. The United States only installed 34,000, and most of them were imported from Japan and Europe. China's industrial resilience has long been It's not what it used to be.
Not to mention the size of China's market. American farmers and technology companies all point to the Chinese market to eat. These areas that the United States itself depends on, they naively think that China dare not touch.
But the facts hit the face of the United States, and China's counter-reaction came quickly and harshly, and directly struck the pain of the United States.
First, the Ministry of Commerce, for all ships carrying American elements to charge special port charges, whether it is a ship made by the United States, or a ship operated by a US company, as long as you enter the Chinese port, you have to pay more money, this shakes the life of the U.S. shipping industry, to know that the United States has a large number of goods each year by ship in China, this additional cost to the U.S. shipping enterprises.
This was followed by countermeasures against American agricultural products. In the past, China imported a large amount of American soybeans and sorghum every year. Now it directly imposes high tariffs and reduces purchases. The soybean prices of American farmers have been falling all the time. Many people drove tractors to Washington to protest, but it was useless.
More critical is the export control card. China has directly tightened exports of key minerals such as rare earths, gallium, and germanium. These materials cannot be made by the United States itself and cannot find a substitute supplier in a short period of time.
Take American electric vehicle companies as an example. 78% of the lithium processing materials in batteries come from China. As soon as China imposes restrictions, the production capacity of these companies immediately drops, and orders cannot be delivered until next year.
There is also the chip industry in the United States. Almost all gallium materials needed to manufacture chips are exported from China. As soon as the control was released, the stock prices of several major chip companies in the United States fell by more than 10% that day.
China also put out a list of unreliable entities, listing those American enterprises that helped the United States to engage in technological blockade, these enterprises not only can not enter the Chinese market, even Chinese raw materials are not used, some American technology companies because of being included in the list, China's market income was directly reduced by 34%.
Only then did the United States realize that it had caused a big disaster. The so-called "50% rule" did not defeat China companies, but instead deceived itself first. China companies no longer rely solely on the U.S. market. In recent years, they have been exploring new markets such as ASEAN and Latin America. The proportion of exports to ASEAN has increased from 10% to 15%. Even if there are fewer U.S. orders, business can still be done.
But U.S. enterprises can not be separated from China, China's special port charges have increased U.S. shipping costs by 20%, agricultural products can not be sold out only ruined in warehouses, high-tech enterprises because of the lack of materials are forced to reduce production, these losses combined are not a small number.
Worse is the domestic prices in the United States, after China's kitchen furniture was added 50% tariff, the price of cabinets in the U.S. supermarket has almost doubled, the cost of ordinary people to buy food and cooking is much higher, inflation pressure has risen again.
In the end, the misjudgment of the United States lies in not seeing the reality clearly, and holding on to decades of obsolete ideas, thinking that China can compromise by technological blockade and trade suppression.
They forgot that China had saved the counter-attack money in the early years, the processing advantages of key minerals, the huge domestic market, the diversification of export channels, all are counter-repression.