Introduction.
The United States is about to usher in a new ***, and the eyes of the whole world are focused on this ***. Trump's sudden proposal to impose a 60 percent increase on Chinese products has strained economic and trade ties between China and the United States. In this article, I will discuss how Trump's potential election will impact the relationship between China and the United States, and share some of my own opinions.
Trump's intimidation of taxes.
Trump said in a private conversation that once he became American, he would tax the whole world, especially against China, and most likely impose up to 60 percent import taxes on Chinese products. The announcement caused widespread shock and concern.
Extension: Trump's anti-dumping duties are not just aimed at China, he will be extended to the whole world. This kind of behavior runs counter to the "freedom" advocated by the United States in the past, and will cause a huge obstacle to the world. Trump's speech shows that the United States is no longer maintaining a posture of cooperation and competition with other countries, but has begun to embark on a protective and closed line. For China, Trump's 60 percent tariff would have a big impact on many companies. Since the U.S. generally only has a profit margin of 5-30%, and the previous 25% import tax rate has caused a decline in China and the United States, now it is difficult for many companies to afford. Since China has always been in the middle and low end of the production process, and the level of profitability is not high, such a high tax rate will inevitably bring a great burden to enterprises, and the economic and trade differences between China and the United States will be more serious.
The United States is self-contained.
Since Trump took office, the United States has gradually implemented a strategy of "closing itself off" and prioritizing the safety of local industries. Trump's attempts to impose regulations on other countries and the United States have had a considerable impact on the world economy.
Extension: The U.S. policy of seclusion is to blockade other countries, which is contrary to the purpose of freedom. Such an act will not only frustrate the economic development of other countries, but will also inhibit the development of the world economy. The United States once relied on borrowing from its creditors to maintain its own development, and when they stopped borrowing, it was necessary that the United States could maintain this status. In addition, a gradual departure from the dollar would place a significant burden on the US economy, while also hurting its purchasing power. The U.S. isolationist approach attempts to change the face of the world, but this will only allow other countries to work more closely together to gradually build their own systems and no longer rely on the United States.
Coordinated measures for the United States and China.
Most people are concerned about which side is more favorable to China, Biden or Trump. However, no matter which country is in power, China and the United States will face a contest, but the means and means are different.
Extension: Whether it's Biden or Trump, China and the United States will face a contest and a contest. Biden may take a different path from Trump, but the outcome may not change significantly. Therefore, China must try to get out of the predicament. In response to the U.S. blockade, China must further develop broader cooperation with countries around the world, reduce obstacles, and expand imports and exports. At the same time, China must also speed up the optimization of its industrial structure and improve its production efficiency. If China wants to free itself from U.S. control, it will have to build its own system and reduce its dependence on the dollar. In the face of the United States' seclusion, China must adopt a entanglement attitude, but it must not completely break with it, otherwise it will bring negative consequences to itself.
Conclusion. The impact of Trump's re-election campaign on U.S.-China relations cannot be ignored, and Chinese companies will face great trouble if the tax rate is raised to 60%. The United States' closure and closure of the world economy is a kind of restraint on the development of the world economy. Regardless of whether Biden or Trump is elected, the confrontation and conflict between China and the United States is a foregone conclusion, and China must cooperate more in the face of the "blockade" of the United States. At the same time, China should speed up the renewal of its industrial structure, reduce its dependence on the dollar, and free itself from US control. Only in this way will China be able to calmly deal with the contest between China and the United States.