Trump's proposed tariff package has the potential to lead to a conflict between China and the United States.
Trump suddenly announced that if he became American, he would impose more taxes on Chinese products, perhaps as much as 60 percent. These comments have sparked concerns and speculation about the economic and trade ties between China and the United States. Whether Trump's import tax plan can take effect and whether the economic and trade relations between China and the United States will continue to deteriorate will be the hottest issues at present.
Trump's import tax package is surprising because the United States, the world's largest economic power, will certainly have a big impact on the tariffs it imposes on countries around the world. This move also violates the basic norms of freedom advocated by the United States. The imposition of import taxes will not only have a great impact on the world economy, but also cause a new round of war.
Trump has raised the tax rate to a very high 60 percent. Recall that since the 2018 war, the tariffs imposed by the United States on Chinese products have only risen by about 25%. This has led to a decline between China and the United States, and some companies have had to relocate their products to places like Vietnam in order to avoid high taxes. However, if the tax rate is raised to 60%, most companies will not be able to accept it. This increase in the tax rate is a huge shock to the already relatively low-end manufacturing industry, and is likely to further deepen the economic separation between China and the United States.
However, Trump's move goes against his previous attitude. The United States has repeatedly stressed that China and the United States should work together and do not want to leave China's chain. But Trump's proposed tariff package exposes America's double standards. Such inconsistencies are unbelievable, and it adds to the uncertainty between China and the United States.
China's choice in the Sino-US economic and trade friction.
Mr. Trump's proposed import tariff has prompted a re-examination of China's response. China has two options in front of it: Biden's blockade and Trump's wall. In the face of these two options, China should take a more proactive approach rather than a hostile attitude.
The best way for China to face a U.S. blockade is to unite with other countries to defend against the threat from the U.S. The United States has suppressed China more than once, and they are largely dependent on their own domestic market. China should act, not wait. In the face of the most important obstacles of the United States, China can work with other countries to reduce the best obstacles and promote the flow of goods. Consolidate your position by exchanging industrial products for energy and food.
The U.S. use this approach to contain China is a challenging issue, but there is no need for China to be overly concerned. Although the United States is a huge economy, its huge consumer market is inseparable from China's huge role. Loans from creditors will support U.S. business. If China gradually abandons the dollar system and works more closely with other countries, the United States will run into trouble with its own operations. Therefore, if the United States wants to silence the manufacturing powers by encircling China, it will inevitably pay a price.
The election of either Trump or Biden will not bring about a fundamental confrontation between China and the United States, but in a different form. In this context, China must improve its own system as soon as possible and accelerate the optimization of its industrial structure in order to get out of the current predicament. The only way to achieve high-end industry and more developing world is to gradually free itself from excessive dependence on the United States. In addition, China should gradually break away from the dollar system and build its own financial system to better handle the competition between China and the United States.
Overall, Trump's proposed import tariff package is highly likely to clash between China and the United States, and it also exposes a double standard on the part of the United States. With the joint efforts of the United States, China should unite all countries in the world to resist the blockade of the United States, accelerate the transformation of industry, gradually break away from the control of the dollar, and gradually build its own international and financial system. In this way, China can gain more autonomy in handling the competition between China and the United States and play an important role in the world economy.