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About The Trade War, We Found An Internal Hearing In The United States
- Aug 10, 2018 -

Recently, the US Trade Representative Office (USTR) officially unveiled a tariff list of $16 billion from China's imports, which will be imposed on a tariff of 25% in August 23rd.

A spokesman for China's Ministry of Commerce pointed out that it was unreasonable for the United States to once again put domestic law above international law. In order to safeguard its legitimate rights and interests and the multilateral trading system, China has to make the necessary counter system and publish the tariff list of the same scale, and the same node will be set in August 23rd.

In fact, America's "irrationality" has also been complained by many U.S. companies, as can be seen in the July 24-25 hearing.

Recording and photographing were not allowed at the hearing, which was rarely reported in the US media. However, the office of the United States trade representative announced the text of the hearing after the meeting. From the long 600 page English report, we could see the virtual reality of the United States to launch a trade war.

In a day and a half, the 301 Review Committee of the United States listened to 82 statements from the president of the trade associations, the founders of the business, and the CEO, to ask for the tariff list of $16 billion. As a result, 76 objected, only six agreed, and some business representatives spoke almost pleading for fear that tariffs would threaten the development of their own businesses and the risk of unemployment. But most people's objections do not change the result. Just to reflect the "public opinion" of the hearing, the U.S. government reduced the number of taxable items from 284 to 279.

What is a way of doing it, that is.

It is a consensus that the imposition of tariffs on Chinese commodities will inevitably have an impact on the economic development of the United States, according to the records of 82 business speeches.

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The American auto and Component Manufacturers Association (MEMA) says MEMA's Chinese suppliers have provided the most jobs in the manufacturing sector, which directly affect more than 871 thousand jobs in 50 states. The relevant content of Clause 301 will make the production cost of enterprises "disproportionately" increase, bring huge losses to enterprises, and even make small and medium-sized enterprises go bankrupt directly.

Goal Zero, the world's largest maker of portable solar devices, says it is impossible to find the right raw material suppliers in the United States, because some of the customized parts of China's small businesses are willing to process the raw materials deeply.

Brinly-Hardy, which produces homes and commercial lawns and gardening equipment for 179 years, has increased their costs by at least 25%. They lamented that "the tariff list would be a nail in the coffin."

Many companies say in their speeches that they are basically importing raw materials from China, because there are no native American sources for replacement, and the source of China's goods has been supplied for many years, with a huge share of its share. For example, in the container industry, 97% of the steel transport containers are made in China, and the legal adviser to Mobile Mini, a related enterprise, said, "in my 20 years of experience, I have never seen a non Chinese container that can reach the US coast."

Like China, many American companies are also deeply integrated into the world division of labor. They enjoy the dividends made from China and benefit from the global trading system. They say the US government is biased against China's "unfair trade".

However, the fact that the business community is putting the facts to reason has not moved the U.S. Trade Representative Office. In the eyes of the U.S. Trade Representative's office, the hearing was not a corporate complaint at all. It can be seen from the record that the staff of the office of the United States trade representative tried to dig out evidence of China's infringement of intellectual property and unfair trade from the mouth of the conference. But most companies have denied this.

For example, Pedego, the leading electric bicycle maker in the United States, said that all of its designs were in California, and that production and assembly in China would not involve the industry's important technology, intellectual property and innovation. Electric bicycles do not involve "Made in China 2025" at all.

The office of the United States trade representative asked, "what kind of design do you mention? Are you worried about intellectual property theft?" Pedego said, "not at all, because it's not scientific and aesthetic."

Like Pedego, many companies have denied that the tax list involves "China made 2025", and that they have not been patented in China, and China has not forced us companies to transfer patents. They don't think the U.S. government's imposition of tariffs will change China's expectations.

Obviously, the U.S. corporate plea did not "impress" the U.S. Trade Representative's office. The US government has already made a presupposition on the political level of China US trade war. It is clear that the allegations of China are not based on the fact that the so-called "unfair trade behavior" of China, including intellectual property theft, has been exaggerated.

Compulsory technology transfer, industrial subsidies, and so on, only serve one purpose - not to accept China's strong, intolerance of China's overtaking, to block China's upward trend in the key stage of industrial upgrading, and to press the momentum of China's vigorous development.

Therefore, the Sino-US trade war seems to be an economic and trade friction, in fact, is also a national movement of the dispute, national movement of the war. Seeing this clearly, we can understand why a hearing has become a "go through the motions", "if you want to add to the crime, why have no words" is this truth.

In fact, China has always seen very well. The Ministry of Commerce of China once said, "the US has created a whole set of policy logic to distort the truth of the Sino US economic and trade relations out of the domestic political needs and the aim of China's development."

This hearing is an excellent example.