The economic calculations behind tariff magic:
The U.S. cut tariffs on Chinese goods from 145% to 50%, with some consumer goods dropping by 25%. It seems like a drastic move, but it is actually a precise defusing — targeting inflation-heavy areas such as household goods and medical equipment, urgently releasing price pressures ahead of the midterm elections. China, on the other hand, seizes the opportunity to tear open the regulatory iron curtain on technology transfers, making further strides in financial opening, yet quietly puts a stop on Boeing's order book.
The silent game of strategic materials:
The absence of rare earths in the agreement text is precisely the most exquisite blank space — the U.S. side's attempt to lift export controls encounters China's countermeasure of 'semiconductor lifting in exchange for rare earths'. Ultimately, a delicate balance is reached in the ambiguous territory of AI chips and data sovereignty: U.S. companies are allowed to export specific computing power chips, while China builds a digital moat with algorithm transparency clauses.
Psychological warfare through off-market tactics:
The People's Bank of China continuously sells U.S. treasuries during the negotiation window as a 'warning to the tiger', resonating with the dramatic shift of the Trump team from 'tariffs are not negotiable' to 'burden relief for American families'. When Treasury Secretary Yellen announces victory with a glowing face, Beijing airport is welcoming new Airbus orders.
This agreement, referred to as a 'win-win', actually hides complexities:
• The U.S. side uses tariff leverage to gain a window for cooling inflation
• China uses market access to pry open the cracks in technological blockade
• The core interests of strategic industries remain in a tangled state
As the whiteboard scribbles on the negotiation room wall suggest — 'Consensus is written on paper, while the contest remains in the heart.' As both sides raise their glasses for a photo, the winds of rare earth mines and the assembly lines of Silicon Valley chip factories continue to write the unfinished chapters of the game.