Faced with the pressure brought by decoupling between China and the United States, Trump cannot withstand it?
At the moment when the contradiction between China and the United States intensifies, US President Trump rarely says that the strategy of threatening China through high tariffs is "unsustainable". So Trump stressed that the United States should reach a "fair" agreement with China.
This incident just happened last night. When Trump was interviewed by Fox Business Channel in the United States, Fox reporters sharply asked a question: Will the U.S. impose 100% tariffs on China damage the U.S. economy?
As a result, Trump said without hesitation: "This is unsustainable. But this is the number, and it may be unbearable, you know, it can't bear, but they force me to do it."
Obviously, Trump already knows that 100% tariffs are not sustainable and will affect the U.S. economy. But the reason why Trump still wants to increase tariffs is for face.
But, logically speaking, Trump can’t let the Sino-U.S. trade really disconnect for the face of the problem. That is, if Trump really announced a 100% tariff on China on November 1, then the first to pay the price would be the United States.
So Trump withdrew his previously stated view: a few days of money Trump said, Because of China's rare earth control, he has no reason to meet with China at the end of this month. Now, Trump told the media that he will meet with China in the next few weeks.
Why Trump's sudden "compromise"? The reason is very simple. Both China and the United States have seen through each other's "cards".
Since Trump came to power, the United States has repeatedly launched various sanctions against China. In the face of these sanctions, China did not compromise, but was very tough tit-for-tat. Especially after Trump announced reciprocal tariffs, China was the first country in the world to carry out "reciprocal counter-measures" against the United States.
To this end, China paid the price of a month's "disconnection", and the U.S. side is the same, and the final result is known, is that the U.S. first compromised, Trump sent officials to actively contact China, and then actively called us to negotiate.
The following four rounds of negotiations have also made it clear to Trump: “The United States has a very strong opponent, they only respect power, they really only respect power.”
Objectively speaking, although there is still a certain gap between China and the United States on comprehensive national strength, the United States is not China's highest and immeasurable country, and the United States is now "not qualified to impose sanctions on China from the position of power."
So what is Trump's attitude now? Hassett, director of the White House National Economic Council, can give the answer.
Hassett also received an interview with Fox Business Channel. He said: “President Trump and Treasury Secretary Bessent have “high confidence” in the ability to reach a consensus with China and return the situation to a track that is beneficial to both countries.
Not only that, US Vice President Wences also said: "Trump cherishes and China because, willing to negotiate rationally with China, 100% tariffs are just to say, please don't be serious."
What does that mean?Simply put, Bessent persuaded Trump to join forces against China.The talks at the end of the month were the best opportunity for the two sides to discuss how to “stop the war.”
This is completely different from the situation that Bescent accused China of "confronting the whole world" just a few days ago. Why is Trump “kneeling so fast”?
First, the reason why Trump knelt so quickly in April this year was because decoupling led to the collapse of U.S. stocks, the triple exchange of stocks and bonds, high inflation and the strike of U.S. dockers. Trump believes that if China and the United States decouple again, this situation will continue to occur, or even worse. This is something Trump cannot bear.
Second, China has already played the rare earth brand. In the field of rare earths, China controls more than 90% of rare earth refining capacity and almost all of the medium and heavy rare earths supply chains. We have stuck the entire high-end supply chain in the United States and even the West, which is much more serious than the Americans stuck in the neck of China.
As long as China does not loosen its grip, the high-end advanced industrial chain in the United States will be completely destroyed. Even as long as China is really willing to control Then the U.S. chip industry, which relies on rare-earth production, will also collapse.
Whether it’s China or the United States. Negotiation is actually the best option, so even if you dare to fight a trade war with other countries around the world, and the United States that dares to fight an agent war with Russia, you have to compromise with China at the negotiating table.
In fact, Trump said that the United States, China is a country that respects power. Before China and the United States combined power difference was too big, although the Americans sanctioned us and launched a 301 investigation, but if China and the United States started the war, then the probability of China's defeat is so great that many people say the Ministry of Foreign Affairs will only "protest."
But, in fact, looking back, our approach was right.
Every time the United States sanctioned us, it was clearly remembered by us. Now the gap between China and the United States has reached a point where it cannot be hidden, and the gap between China and the United States has gradually diminished. We were not bombed by the Yugoslav embassy a few decades ago, nor were we able to “war” with the United States.
China now has the strength and ability to negotiate with the United States and sign a "fair and mutually beneficial" trade treaty. I also hope Trump can remember not to play tricks with China or even go back on his word. If this is the case, Then next time, the U.S. will not have the opportunity to sit at the negotiating table with China.
---------------------------------
[Yinglang Finance] Explore the truth behind the hot spots, and welcome likes, comments and appreciation