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United States officially launched a move on China and finalized a 100% tax increase on China, but it did not intend to expose its fatal weakness

The hidden crisis under the trade wrestle between China and the United States

In recent years, the trade game between China and the United States has been in the spotlight. On the eve of United States President Joe Biden's resignation, the United States government announced another high tariff on Chinese goods, including an increase in tariffs on some goods to 100%. On the surface, this appears to be another economic crackdown on China by the United States. But a closer look at the reasons reveals that behind United States having to make this difficult choice, there is a fatal weakness that can shake the foundation of the United States industry.

The latest developments in the state of affairs

According to related reports, the United States government officially announced in mid-September this year that it will continue to impose tariffs on some goods imported from China, including graphite, a key raw material used in automobile manufacturing. However, surprisingly, the United States government specifically issued an exemption order for graphite in this tariff list, delaying the increase in its tariffs until 2026.

This decision has attracted widespread attention. Insiders in the automotive industry believe that the move is all about "asking for trouble". Because the automobile industry is inseparable from raw materials such as steel, the United States government has also imposed a 25% tariff on steel imports from China. This will undoubtedly significantly increase the cost of automobile manufacturing.

At the same time that the United States government announced the tariffs, the Chinese side did not "lie down". The continuous improvement of China's industrial manufacturing level has made "Made in China" more and more popular, which has greatly impacted local enterprises in United States. In order to protect its industry, the United States has to resort to protectionist measures again.

The interests of all parties

On the surface, this tariff policy is undoubtedly a move taken by the United States government to safeguard the interests of its own industry, especially the automobile manufacturing industry. However, a careful analysis shows that the United States government seems to have ulterior motives in this matter.

First, the auto manufacturing industry, as the backbone of United States manufacturing, does need government protection. But crucially, the development of United States auto manufacturing relies heavily on raw materials such as steel and graphite imported from China. Since the United States government has imposed tariffs on steel, why is it giving graphite a "gold medal for avoiding death"?

Secondly, in the medium and long term, new energy vehicles are becoming the mainstream trend of the global automotive industry. As a key raw material for batteries, graphite plays a pivotal role in the field of new energy vehicles. So, why did the United States government specifically exempt graphite tariffs while targeting China's new energy vehicle industry?

In this regard, it is not difficult to speculate that the real purpose of the United States government is likely to try to curb the development of China's new energy automobile industry and protect its own automobile manufacturing industry through trade means. But at the same time, United States has to admit that it has a fatal weakness in key raw materials such as graphite, and it is difficult to completely break away from dependence on China.

The root behind the incident

To get to the bottom of this, we need to look at it from a historical and geopolitical perspective.

For a long time, the United States has been committed to transferring some traditional manufacturing industries with high pollution and high energy consumption to overseas through industrial transfer and other ways to maintain the high-end of its own industry. The steel industry is a prime example of this. The United States outsources these "sunset industries" to developing countries, focusing on the development of high-tech and service industries.

However, with the continuous advancement of China's industrialization, the technical level and production efficiency of traditional manufacturing industries such as China's steel have been greatly improved, and the cost performance of products has been continuously improved, and large-scale substitution of local products in United States has begun on a global scale. To a certain extent, this has impacted the local manufacturing industry in United States and triggered a sense of crisis in the United States.

Moreover, with the advent of the era of new energy vehicles, China is far ahead of United States in the reserve and production of graphite, a key raw material, which undoubtedly exacerbates United States's anxiety. Once China dominates the development of the new energy vehicle industry, it is bound to have a huge impact on the original United States automotive industry.

Therefore, United States has to use trade to contain China's rise when its own industry is facing a crisis. But at the same time, it has exposed its heavy dependence on key raw materials, which is undoubtedly its "fatal weakness".

Possible Impacts and Consequences

The fermentation of this trade dispute will undoubtedly have a far-reaching impact on the economic landscape of China and the United States, as well as the global economy.

First, it will undoubtedly increase the risk of economic and trade friction between China and the United States. Although the United States ostensibly protects its own manufacturing industry, the real purpose behind it is likely to be to hit the development of China's new energy vehicle industry through tariffs. This is bound to provoke strong resentment in China, and the two countries may be drawn into a more intense trade war.

Second, this kind of trade protectionism will also bring serious disruptions to the global industrial and supply chains. As one of the most globalized industries, the automotive manufacturing industry is highly dependent on the free flow of raw materials and components in various countries. United States' restrictions on key raw materials will undoubtedly affect the normal operation of the global automotive industry.

In addition, such a trade dispute could further intensify the geopolitical competition between China and the United States. United States is trying to contain China's rise through economic means, and China is bound to respond resolutely. This could lead to a further deterioration in relations between the two countries, which could trigger a broader geopolitical conflict.

In short, this tariff measure against China's new energy vehicle industry not only exposes the fatal weakness of the United States industrial structure, but also may trigger a more fierce Sino-US trade game, bringing huge turbulence to the global economic order.

epilogue

The contest between China and the United States for economic power has gone far beyond a purely trade issue. Behind this are two completely different development paths and interest demands. United States tried to maintain its economic hegemony through protectionist means, but in the end it exposed its own industrial shortcomings that it could not make up.

In contrast, with its long-term industrialization path, China is rapidly narrowing the gap with developed countries, and gradually grasping the initiative in key technologies and industrial chains. This will undoubtedly have a disruptive impact on the existing global economic structure.

So, under this pattern, can China and the United States find a mutually beneficial and win-win development path and achieve "peaceful coexistence" in the true sense? This may be a major question worthy of everyone's deep consideration.

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