Weakness and ignorance are not obstacles to survival; arrogance is.
疯比特
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Shocking Truth Revealed: Why is China Stubbornly Opposing the U.S.? The Underlying Logic is Beyond Imagination!
Many people are puzzled as to why China is so resolute in its trade friction with the U.S. Can't it compromise to protect people's livelihoods? This viewpoint only sees the surface and overlooks China's true bargaining chips in the current game.
As early as 2018, China chose to concede to stabilize people's livelihoods and signed the 'Phase One Agreement,' but the U.S. did not stop imposing tariffs; instead, it intensified its actions. Now, tariffs have soared to 104%. If China continues to make concessions, it will not only pay enormous tariffs for nothing but also lose its dominance. There is a deeper logic behind China's refusal to compromise.
Why not back down?
1. The revenue from tariffs is monopolized by the U.S., and China suffers losses.
$500 billion in exports were subjected to $250 billion in tariffs, which is essentially a giveaway. China only earned a small portion of this, far less than using that money to stimulate domestic consumption.
2. Even with tariffs, Chinese products remain irreplaceable.
For example:
Zhejiang coffee cups cost $0.8 to produce, and are priced at $48 in the U.S.
Bluetooth headphones have a factory price of $3, but are sold for $22 in the U.S.
LED bulbs cost $0.5 in China, while in Canada they can be as high as $22.
Air fryers are priced at 59 yuan in China, but marked at $499 in the U.S.
These 'absurd price differences' indicate that Chinese manufacturing is still a necessity. Tariffs cannot completely sever the supply.
3. The real impact is on U.S. brands.
A large number of smartphones and electric vehicles exported from China are actually produced for American companies like Apple and Tesla. Hitting Chinese manufacturing ultimately cuts the roots of American enterprises.
Three Pillars Supporting China's Strong Stance
1. Leap in Energy Independence.
The penetration rate of new energy vehicles in China has surpassed 50%, and the reliance on oil has drastically decreased, making energy blockades less effective.
2. Breakthroughs in Technology.
China has made significant progress in fields like semiconductors, aerospace, and operating systems. Once-blocked technologies like Harmony and Beidou have now become pillars of domestic production, turning technological blockades into motivation.
3. Huge Domestic Demand Potential.
China is transforming into the world's largest consumer market. If domestic demand can be activated through stimulus policies, it will attract global attention and reshape the discourse.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.