Current misconceptions in the China-US tariff war need to be clarified:
1. Tariff Truth: The U.S. has raised tariffs on Chinese goods to as high as 104% (for certain steel products), but the average tariff rate on Chinese goods exported to the U.S. remains around 19%. The so-called "punitive tariffs" by the U.S. essentially serve as a double harvest: taxing Chinese companies while making domestic consumers foot the bill.
2. Pricing Secrets: The factory price of coffee cups produced in Zhejiang is 6 yuan, while the retail price in the U.S. reaches 300 yuan, a price difference of over 50 times. Chinese manufacturing still controls 78% of the global pricing power for small goods, with distributors like Walmart capturing over 90% of the profit margin.
3. Industry Reality: Suppliers for Apple in China account for 47%, and Tesla's Shanghai factory contributes 52% of global capacity. The cost of restructuring the supply chain for U.S. companies in China reaches up to $420 billion, which underpins China's negotiating strength.
Three strategic supports for China's tough counterattack:
▶️ Energy Revolution Breakthrough
The penetration rate of new energy vehicles exceeds 50%, and the installed capacity of photovoltaic power generation surpasses the total of the U.S. and Europe combined. Dependency on foreign crude oil has decreased from 73% to 65%, with strategic reserves reaching 180 days of usage.
▶️ Technological Counterattack Breakthrough
The HarmonyOS installed base surpasses 400 million (the third-largest mobile OS globally), the localization rate of core components for the BeiDou satellites reaches 100%, and the yield rate of SMIC's 7nm chips has reached TSMC levels.
▶️ Awakening of Domestic Demand Market
With a population of 1.4 billion, a $4.3 trillion consumption market is created, and the scale of cross-border e-commerce has surged 11 times in 5 years. After the activation of the internal circulation strategy, it is expected to capture 25% of global luxury goods consumption by 2030.
The essence of the game is the struggle for industrial control. The U.S. tariffs have caused domestic companies to lose $1.7 trillion in market value, while the value added of Chinese manufacturing has surpassed that of the U.S., Japan, and Germany combined. The outcome of this protracted war may reshape the global economic power structure.
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