The United States has prescribed the wrong prescription and is doomed to failure to contain China's manufacturing
February** Dynamic Incentive Program
The United States** has taken a series of measures to counter the competitiveness of Chinese products, but will these strategies really work? The answer is no. Chinese products play an important role in the global market, and the U.S. policy of containment is futile.
After Biden took office, he invested a lot of money in the development of high-tech industries, green industries and infrastructure. But the New York Times pointed out that even if the United States does not import Chinese products, these products will be exported to other markets around the world, which will pull down the global ** and make domestic products uncompetitive. In addition, the competitiveness of Chinese products is not only due to subsidies, but also to the huge domestic market size. For example, China's domestic EV sales reached 6.7 million units in 2023, far exceeding the 1.2 million units sold in the United States. China has also invested US$130 billion in the PV sector, enough to meet global demand for many years to come.
U.S. congressmen continue to demand that Biden take measures, and negotiator Tai Qi has also said that she will work with U.S. companies and unions to respond. However, the U.S. strategy ignores the real competitiveness of Chinese products in the market. The average domestic price of electric vehicles in China is 2$80,000, well below the $4 in the United States$750,000. The same is true for photovoltaic products. This means that even if the United States produces products through subsidies, it will face global low-price competition and lose competitiveness.
Trump even threatened to cancel Biden's industrial subsidy policy after taking office, which may bring a fatal blow to Biden's policy. Containing Made in China will not solve the problem, and the United States should face up to the reality and find a way to win-win cooperation with China.
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