According to the Ministry of Commerce spokesman Ho Qing on October 30 on the press conference on China-U.S. Economic and Trade Consultation in Kuala Lumpur, China-U.S. has basically suspended the implementation of measures for a year!

The most embarrassing are two, one is U.S. Secretary of Commerce Howard Lutnik, on September 29 on China's 50% equity penetration rule almost caused the US-China negotiations to break; the other is the Dutch Prime Minister Shoff, the Netherlands on September 30 because of the equity penetration rule "confiscated" the full-holding China's Anse Semiconductor, now the Chinese and U.S. owners shake their hands and say, how should the Dutch dog decently come down?

Trump spent six months solving the crisis he created.

Do western countries such as Europe, Japan, South Korea, India and Canada need to reflect on it? Are you envious of the results of the current negotiations between China and the United States? He Yongqian, spokesman of the Chinese Ministry of Commerce, made public at the press conference at 15:00 on October 30th that the Sino-US trade war has almost returned to before the liberation of the United States:

1. The United States will cancel the 10% so-called "fentanyl tariff" imposed on China goods, the 24% equivalent tariff imposed on China goods will continue to be suspended for one year, and China will cancel reciprocal countermeasures;
2. The US will suspend the implementation of its September 29 export control 50% penetration rule for one year.China will suspend the implementation of related export control measures announced on October 9 for one year, and will study specific plans.
3. China will suspend the implementation of its 301 investigation measures on China's maritime, logistics and shipbuilding industries for one year. After the United States suspends the implementation of relevant measures, China will also suspend the implementation of countermeasures against the United States for one year accordingly.

In addition to these measures, the two sides also reached consensus on issues such as fentanyl anti-drug cooperation, expansion of agricultural product trade, and case handling of related enterprises. The two sides further confirmed the results of the Madrid economic and trade consultations. The United States has made positive commitments in investment and other fields. China will properly resolve TikTok related issues with the United States.

Who won the US talks?

Reuters reported on October 30 that the two parties to the agreement seem to be win-win. Because China resumed soybean purchases, suspended rare earth export restrictions for one year, and the United States reduced tariffs on China by 10%, the United States withdrew its fentanyl tariffs against China, the 50% penetration rule and special port fees, largely returning to the status it existed before the tit-for-tat escalation triggered by Trump's Liberation Day (April 2) offensive.

But the outcome is indeed what the two sides want, but one thing that must be pointed out is that there is an absolute discrepancy between what Washington wants and what Beijing is willing to offer! because Trump's initial goal when launching these trade wars offensives was to contain China, to hit China's industrial policy, manufacturing overcapacity and its export-driven growth model.

"But in the end, it turned into easing the measures taken by both sides in this escalating trade war since the Trump administration took office," Emily Kilchris, director of the Center for a New American Security, told Reuters. This result shows that China's strategy in dealing with the U.S. trade war is very steady. China has long prepared a series of toolboxes for the trade war with the United States, and these measures launch targeted countermeasures against Trump's every step.

However, Reuters also that Trump described the meeting as ¡°G2¡± on social media after meeting with Chinese leaders, which indicated he was still more satisfied.The two people that U.S. Secretary of State Rubio will also meet when he talks with Chinese Foreign Minister Wang Yi are called ¡°world-class leaders.¡±

Not only is Reuters, but the New York Times on October 30 that ¡°Trump has been busy for six months and solved the crisis he has made.¡± CNN and Western media also generally believe that China has won a major victory, and the United States is forced to make concessions in this China-U.S. trade war.

This is the assessment of foreign media that China has won, and some people on domestic social media have said that China can absolutely not abolish rare earth controls! China will suspend the implementation of relevant export control and other measures announced on October 9 for one year and will study and refine specific plans", this means that it will only suspend the implementation of the 0.1% rare earth control measure and not cancel the heavy rare earth control measure announced on April 4 this year.

The other is that the two sides suspend the collection of special port fees, which should be taken advantage of by China. After all, China is unwilling to use this model to influence the trade between China and the world. In addition, one purpose of this special port fee in the United States is to target Chinese-made ships, that is, to suppress China's shipbuilding industry. The implementation of this policy by the United States has some impact on the orders of China's shipbuilding industry. Now that it is good for both China and the United States to be suspended, it is of course good for the shipbuilding industry.

Another is the lifting of Hanwha maritime sanctions against South Korea? The spokesman of the Ministry of Commerce didn't say, of course it won't be cancelled! The sanctions against such American accomplices should not be lifted. The two masters were wrestling, and the dog was biting under the table. Now that the masters were shaking hands and making peace, the dog was embarrassed.

There is also the purchase of U.S. soybeans. According to Bloomberg News, China will resume soybean procurement. Reuters also reported that China COFCO has purchased three batches of U.S. soybeans, but not too much, with a total of 180,000 tons so far. This is the first time that China has purchased American soybeans during this harvest season. Trump is really angry about not buying soybeans. After all, a large number of his supporters are red-necked bean farmers. They all support the United States being great again, but when the iron fist of socialism hits him, everyone cries and cries.

More interesting is the recent rise in the price of Brazilian soybeans, I wanted to scratch the oil during the China-U.S. trade war, as a result of which the Sino-U.S. reached an agreement, China purchased soybeans to the United States as an exchange condition, in recent years the United States because of China's non-procurement caused soybeans sales to go badly, soybeans prices fell abruptly!

Overall, the China-US trade war negotiations are not concessions, but just an equal exchange, in a simple summary, it is probably as follows:

1. The U.S.-China negotiations symbolized the "flat up and down", and the United States for the first time made economic and diplomatic concessions.
2. China's exchange of tariffs, rare earth, soybeans, etc. has not made substantial concessions.
3. The United States relaxed semiconductor controls and China delayed rare earth exports. The two contained each other.
4. Soya procurement is also a mutual exchange, one of the exchange conditions for a series of US concessions.
5. China uses the buyer¡¯s market and resource advantages to alleviate US economic pressure.
6. Western media has generally described the United States as having suffered ¡°unreparable frustration.¡±
7. The trade war between China and the United States has frozen, and U.S. tariffs have lost substantial significance.

There has also been explosive news recently. Trump has announced that he will sign an executive order to replace electromagnetic catapults with steam catapults. Trump has admitted that technology is backward, and the failure of electromagnetic catapults symbolizes the overall backwardness of U.S. military technology. One of the landmark events, the last landmark event was China's first sixth-generation aircraft, and the current sixth-generation aircraft plan of the United States is still on the drawings.

The world is waiting to see the Dutch joke.

There is a very embarrassing figure in this negotiation, one is US Secretary of Commerce Lutnick! On September 29, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce issued an interim final rule, expanding the scope of application of the "Entity List" and "Military End-User List" in the Export Administration Regulations:

When a listed entity directly or indirectly owns an aggregate of 50% or more ownership of another entity, the associated entity will automatically be subject to the same licensing requirements as the listed entity.

The general idea is that as long as a company is included in the list of restricted entities by the United States, companies with an overseas investment equity of 50% or more will automatically be subject to United States sanctions. This is the new regulation known as the "50% equity penetration system"! The United States intends to use this method to wipe out China's high-tech entities in one go.

China's 0.1% rare-earth control policy and the strict control measures of the entire rare-earth industry chain are aimed at this policy introduced by BIS on September 29. This 0.1% regulation policy is even wider than BIS's 50% equity penetration jurisdiction, because almost hundreds of global high-tech segments are used for rare-earth, and once China tightened the control policy, the global high-tech industry will stop, especially the semiconductor sector is a disaster zone.

According to Business Insider reported on October 29, Goldman Sachs recently issued an evaluation report stating that it will take the United States and Western countries at least 10 years to establish a complete rare earth industry chain, and hundreds or even hundreds of billions of dollars will be invested. But what they are solving is only an area that overflows the annual export volume of only hundreds of millions of dollars.

This is one of the important reasons for the low-head recognition of the United States, for the beginning of the foolish Minister of Commerce, Lutnik, Trump obviously did not give him a good face, so that in the whole of October, Lutnik did not reveal several times. Estimate that Trump saw Lutnik is also uncomfortable, you say this is what it is, give China a thorough hair, so that everyone can not survive.

Another most embarrassing thing is the Netherlands: holding chicken feathers as arrows, this time you can't get off the stage

On October 23, the EU leaders held a meeting in Brussels, where the EU was involved in discussing the response to China's key raw material export controls and other issues. Especially because China banned Anselm Semiconductor exports, which led to serious problems with the supply of chips from major car companies such as Volkswagen, BMW and Mercedes in Europe, is facing the crisis of stopping production!

After negotiations, Anselm China finally resumed the supply of goods to Europe, but put forward two conditions, one is to re-sign the supply contract, re-pay the goods (originally European car companies to the Netherlands headquarters signed and paid); the other is to use RMB to pay; this play the Netherlands is stupid, European car companies to get the chip is still nice to sign the contract to pay, but Anselm China has a condition, first to meet the domestic car companies supply, there is a surplus to supply to Europe, the European people are very downstairs!

On September 30, the Dutch government implemented a secret emergency order on the Anchor Semiconductor as a result of the Cold War period's "Material Availability Act", on October 7, the Dutch Amsterdam Commercial Court made a preliminary decision: the suspension of CEO Zhang's school office, and the majority of the voting power was handed over to the independent manager, on October 12, the Dutch government publicly announced the above-mentioned takeover decision, which triggered a strong reaction from China.

On the surface, the Netherlands' move is a response policy to the 50% equity penetration system issued by BIS on September 29, because Nexperia's parent company Wingtech Technology was included in the entity list by the U.S. Department of Commerce in December 2024. After the release of BIS's policy on September 29, Nexperia will be automatically included in the entity list.

But the fact that Anselm Semiconductor is already a wholly-owned subsidiary of China's Zhou Tai Technology, how to deal with it is not the turn of Dutch jurisdiction, so the real factor is that the U.S. planned the Dutch robbery of Anselm Semiconductor to reach the extent to which the Western companies that let China control, simply to trigger a panic, and even take the Netherlands as the example of the new "eight-coalition army" to rob Chinese assets.

According to the British "Telegraph" report, on October 26 local time, former Conservative Party leader Sir Ian Duncan Smith and other senior politicians were calling on the government to "forcibly divest" Ansei Semiconductor's chip factory in Manchester, citing "National security risks". The British government is using "national security" as a reason to pressure China parent company Wentai Technology to transfer control of the factory.

Of course, this is only the noise of conservative people, not the British government's statement.But the belief that the British government watched the Dutch prime minister's encounter at the EU leaders' meeting held on 23 in Brussels was also very embarrassing, at the time, because the Netherlands forced to take over Anselm Semiconductor Chinese-owned enterprises, blocked by various media, the scene was very embarrassing.

The robbed Anselm Semiconductor headquarters, attempting to threaten technology and access rights and pay off, forced Anselm China to accept the leadership of the Dutch headquarters, but on October 18, Anselm China's tough response and said to run independently directly made the Dutch headquarters blind.

More embarrassingly, Anselm China has enabled the backup technology route, Anselm China has already prepared the ship after the acquisition in 2020, in order to prevent the Dutch headquarters from taking this hand. Later, the goods are no longer through the headquarters, the Netherlands has less billions of taxes, and at the same time China does not have to be reserved for the total transfer trade and profit, in general, at least Anselm China has earned more money.

But one thing we must not forget is that Nexperia is an asset of Chinese technology companies. We must not negotiate for this kind of robbery. Once we negotiate, we will fall into the trap of the Netherlands. Negotiating with robbers is to turn illegal means into legal means. In the future, western countries will compete to follow suit, resulting in endless troubles! If you can get it back, you must get it back. If you can't get it, you will block it all over the world. It's better to be broken than complete!

The good news is that BIS's 50% equity penetration system has been suspended for a year, and now the pressure is once again on the Netherlands! The United States has made this policy clear. Does the Netherlands intend to continue to fight hard with China? The policy between China and the United States has opened up a new situation, but it does not affect us from formulating a separate set of policies for the Netherlands. If the Netherlands is ignorant, we can continue to play with it!