Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
On April 25, the website of the American publication The Hill published an op-ed article stating that the US trade strategy of bullying China into submission with high tariffs is failing at an alarming rate. China has taught Trump a harsh lesson on trade issues. Far from shaking China, the trade war has awakened a new sense of national duty.
Screenshot of an article from the American The Hill
The author of the article suggests that the United States’ ignorance of China’s history, culture and economic advantages, and even its underestimation of the fragility of the US economy itself, are forcing the US to pay a high price.
After Trump re-assumed office, he reclaimed his iconic “tariff weapon” and announced tariff increases of up to 145% on imports from China in an attempt to force China to make concessions in trade talks.
Anyone with even a passing knowledge of Chinese history, however, can foresee the US’s failure. The First Opium War in 1840 marked the beginning of China’s “hundred years of humiliation,” caused by the so-called “balance of trade deficit” dispute. At the time, Britain forced China to trade in opium to solve its trade deficit with China.
The article also said that one of the reasons for the United States’ failure is that China is better able to withstand a trade war than the United States itself. The reason is quite simple: due to the constant economic pain caused by the trade war, the Chinese economy has become quite resilient and is ready to withstand challenges. China holds more than $750 billion in U.S. Treasury bonds, enough to provide financial support to battered export manufacturing companies.
The United States, by contrast, faces a more intractable supply chain problem than a shortage of funds. Once China’s exports to the United States are significantly reduced, the shelves of American Wal-Mart supermarkets will quickly become empty. American consumers will find that tens of thousands of items – from electronics to Christmas decorations – are either out of stock or have seen their prices skyrocket.
What is even more ironic is that U.S. tariff policy has, in contrast, provided China with a strategic opportunity. China has long sought to reduce its dependence on exports and reduce demand for Western technology. The trade war provides China with a golden opportunity to accelerate its transformation.
Moreover, Trump clearly underestimated China’s strategic patience.
Faced with pressure from domestic retailers and consumers, Trump seems to have lost his head. He first abandoned his plan to impose a 145% tariff on Chinese electronics within 48 hours, then said tariffs on China would be significantly reduced, even claiming that “the two sides are negotiating every day.” In fact, there are no negotiations at all.
The US economy relies heavily on Chinese-made goods. The complexity of the supply chain – from everyday items to industrial components – is not always compensated for by money. Especially as the Christmas shopping season approaches, retailers typically confirm bulk orders in early June. If the threat of 145% tariffs persists, retailers will be afraid to place orders, and shortages of Christmas lights, toys and other goods will become inevitable. American media have begun predicting that “Trump Stole Christmas” will make headlines.
The article concludes that the U.S. trade war is driven by historical ignorance and economic shortsightedness, and that the U.S. is paying a high price for it. Critics say the Trump administration is “learning from mistakes in real time,” but the cost of this class will be shared by American consumers and manufacturing companies. And it will be a costly lesson.