The united states has recently announced further tariff increases for imported products such as electric cars, lithium batteries and photovoltaic batteries. In the opinion of the analysts, such an attempt by the united states to crush china's industries would be detrimental to trade and economic cooperation between china and the united states。
Behind you, make a trip
On 14 may, the united states released the results of a four-year review of china's 301 tariff increase and announced further tariff increases for products imported from china, such as electric cars, lithium batteries, photovoltaic batteries, key minerals, semiconductors and steel aluminium, port cranes and personal protective equipment, based on the original 301 tariff。
Of these, tariffs on electric vehicles will be raised from the current 25 per cent to 100 per cent。
Professor choi van, professor at the university of foreign economics and trade, stated that the biden government's increase in tariff increases had resulted in a tough image of the presidential campaign, competing with trump for the aims of the electorate, as well as considerations to further suppress china's new energy industry and compete for international market shares。
At present, china's new energy industry is booming. According to china's statistics, china's new energy car production increased by 35. 8 per cent and 37. 9 per cent, respectively, in 2023。
The technology, performance and quality of products in related fields are also widely recognized in international markets. In the case of batteries, a key component of a new energy vehicle, from liquid lithium batteries to semi-solid lithium batteries, from charging a 1,000-km renewal of a gill battery to charging a 500-minute recharging 400-km high-voltage silicon platform, chinese battery core technology continues to break out, with longer mileage and faster recharge。
According to cuifan, the 301 tariff imposed by the united states on china since july 2018 is in fact an extension of the 301 tariff imposed on china, moving from downstream to upstream along china’s new energy chain: forcing firms to move production chains out of china before forcing them to invest in the united states or transfer technology。
Chen wen ling, chief economist of the china international economic exchange centre, also said that the subject of the new energy industry had now been politicized and instrumentalized. The united states raised tariffs to crush china's new energy industry, aiming to transform its industry and buy more time。
Who's the victim
The united states has increased tariffs on products such as chinese electric cars and lithium batteries, and victims。
The first to hit was the chinese-american trade relationship. In choi's view, the current tariff hike by the united states poses a huge obstacle to the direct export of chinese electric vehicles and photovoltaic products to the united states。
It is worth noting that the u. S. Has previously initiated a two-way investigation process in viet nam, cambodia, malaysia and thailand. According to choi, this could also affect the path of chinese offshore investment and exports of intermediate goods. In the united states, the middle- and long-term impact of the new energy industry in china requires close attention。
The press spokesman of the ministry of commerce of china stated that the abuse of the 301 tariff review procedure by the united states for domestic political reasons and the further increase of the 301 tariff imposed in part on chinese products were typical political manoeuvres. The increase in united states tariffs by 301 is contrary to president biden's commitment not to seek to curb china's development and not to seek to de-link from china, as well as to the spirit of consensus between the two heads of state, which will seriously affect the climate of bilateral cooperation。
Global cooperation to address climate change would also be hampered. According to the ministry of commerce, blocking china's free trade in green products does not help to solve its own problems. Rather, it undermines global cooperation to address climate change and impedes global green transformation. There can be no protectionism, and no real cooperation can happen。
The press spokesman for the department of commerce stressed that the united states should immediately correct the wrongs and eliminate the imposition of customs duties on china. China will take firm measures to defend its rights and interests。
Who gets what
Can united states industries develop by raising tariffs to curb china's new energy industry? The answer is no。
China's new energy cars are sold globally on a solid basis. In addition to technological innovation, in terms of production supply chains, chinese enterprises have gradually gathered together in practice to create efficient and complete production chains, and new energy-based automobiles throughout the long triangle have been able to supply the spare parts required within four hours of a journey, with a “four-hour production circle”; in terms of market ecology, the chinese market is large and competitive, and the strong are the ones who can emerge from the sands of the great wave。
In their recent attendance at the global trade investment promotion summit in 2024, the heads of various chambers of commerce stated that china's new energy vehicles had a clear advantage in terms of technology and scale costs, and that the quality of their products was improving. (reading: what did the heads of international organizations and chambers of commerce talk about
In other words, to catch up, the relevant industries in the united states need to combine technology, innovation, and production chains。
As stated by the ministry of commerce, trade protection does not achieve the desired result. By “labelling” the caps, restrictions on chinese exports and investment cooperation do not prevent china from moving forward, but rather tripping itself。
