I recently read a report and share it today.
According to the Financial Times, the United States and its allies will take action if China tries to alleviate its industrial overcapacity by dumping goods on international markets.
The article said that the United States is most concerned about advanced manufacturing, especially clean energy industries such as electric vehicles, solar panels and lithium-ion batteries.
Yellen is also expected to raise China's overcapacity at the G20 foreign ministers' meeting later this month.
That's right, the United States is now going to make a big deal about the "harm" of the West after our overcapacity, mainly in the manufacturing industry, which has been talked about a lot recently this year.
The reason is very simple, the upgrading and development of China's manufacturing industry is too good. For example, from 2017 to 2023, China's production of new energy vehicles increased by 7.5 million units to 8.3 million units, and exports increased by 3.8 million units to 4.9 million units.
Speaking of overcapacity, this is not our problem in the first place, because the world is generally in the problem of strong supply and weak demand, so most of the world's manufacturing industry is involution.
Moreover, many years ago, we did have overcapacity, mainly steel, cement, these infrastructure materials, at the same time, most of the foreign countries, especially the "Belt and Road" countries need it, so it is mutually beneficial.
There are two reasons why the West, including the United States, did not make a big deal of slander at that time, or that it is not in a hurry now:
First, the United States had just experienced the 08 financial crisis and was eager to recover its own economy, so the demand was strong after large-scale money printing, and the only manufacturing industry in the country was in short supply.
Second, commodities such as steel and cement do not belong to high-tech fields, and Western countries do not care much about it, and they need China in many ways at that time, for example, the United States desperately wants China to buy more US bonds.
Today is different from the past, the global economy has undergone tremendous changes, the political ecology is also very different, China's economy is not only developing rapidly, high-end goods are also made, and technological progress is obvious to all.
As a result, the United States could not sit still, on the one hand, it wanted to develop its own manufacturing and engage in the so-called "Made in the United States", and on the other hand, it would suppress other countries, of course, mainly against us.
Especially in the field where we already have a high reputation and market in the world - new energy, the United States shouts every day that it can't do it, and it wants to compete with China, and then it has its own way out.
Therefore, in the future, the United States will definitely set up more obstacles in our exports, not only in the introduction of unfriendly policies, but also in the possibility of more slander.
To put it bluntly, it is to win over other major economies other than Western countries, which is now very important, and it is likely to become one of the main means of the United States against China for a period of time.
Of course, the actual effect will certainly not be as the United States wants, for the simple reason that manufacturing is not something that anyone can play well if they want to, and it is not something that can be sold how they want.
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