Sanctions if dumping ? The United States threatens China out of nothing and creates bargaining chip

Mondo International Updated on 2024-02-22

On January 20, 2024, Lianhe Zaobao reported that the United States and its allies will respond to Washington**'s attempt to dump goods on the global market in response to China's "excess production capacity".

White House. Financial Times" quoted official sources in the United States, and U.S. Treasury Secretary Chambeau has expressed the U.S. attitude to this in a previous visit to China, and U.S. Treasury Secretary Yellen will list this issue as the main topic of this trip to China. What the United States is most worried about now is new technologies such as new energy vehicles, solar cells, and lithium batteries.

So, what should we think about this? What is the real intention of the United States in publicizing this matter with such fanfare?

First of all, we would like to give a brief explanation of the issue of "dumping" and give a brief explanation of the concept of "overcapacity". "Dumped goods" refers to the export of a commodity from one country to another at a comparable rate to its domestic market.

More precisely, "dumping" is when exporters sell large quantities of their products overseas, while the prices of these products are lower than usual.

The so-called "overcapacity", which is actually easier to explain, refers to the fact that people make goods that far exceed people's needs. After understanding what is going on with "dumped goods" and "overcapacity", if we look back at the accusations made by the United States, it is easy to see that this is simply nonsense.

Blinken. Chinese products are generally higher than those of China, such as BYD, some of their models can be sold for double the price, in this case, the United States is still hyping up China's "dumping goods", that is nonsense.

Naturally, the United States and the West also know this, and they cannot justify themselves at all, so they hype up "subsidy measures", for example, the European countervailing investigation of Chinese trams is one of them.

But in fact, it is the United States and Western countries that have carried out large-scale subsidies for the new energy industry, and the "Inflation Reduction Act" introduced by the United States is one of them.

As Fu Cong, the Chinese ambassador to Europe, said, China's electric vehicles have a place in the world, mainly thanks to the efforts of China's R&D team and Chinese employees.

New energy sources. All in all, some Chinese goods are exported abroad, because China's manufacturing technology is relatively advanced, and it is relatively cheap, so there will be no "dumping".

The reason why the United States is hyping up it is nothing more than to put a hat on itself, and China also has the right to push its products to a higher level in accordance with WTO regulations.

Besides, don't say "no" just because China's stuff is better than yours, many goods from the United States and Europe have a large share in China, what do you think?

China and the United States. All in all, the Americans are asking for trouble for themselves. And on the side of the United States, there are at least two goals.

First, give them a reason to maliciously attack Chinese products. But even so, China cannot afford to watch the United States use this reason against China.

Second, the United States has the intention of "making cards out of nothing" because Yellen is about to visit China. On the premise that there is no means of negotiation, creating a condition for negotiation on the basis of nothingness, and then exchanging China for its own benefits, is simply a shameless act.

At the same time, this incident also shows us that China and the United States will continue to be a period of strategic game for a period of time to come, and we need to continue to strengthen our own strength.

** and fan reward programs

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