In an empty punch, the United States announced additional tariffs on Chinese electric vehicles

On May 14, the United States announced an increase in tariffs on China's electric vehicles, lithium batteries, photovoltaic cells, key minerals, semiconductors, steel and aluminum, port cranes, personal protective equipment and other products. Among them, the tariff on electric vehicles will be raised from 25% to 100%.

From some politicians hyping up the "China overcapacity theory" to now imposing substantial tariff increases despite China's strong opposition, the United States has chosen to make more mistakes.

Liu Ying, a researcher at the Chongyang Institute for Financial Studies at Renmin University of China, told Sino-Singapore Finance that this year is a U.S. election year, and political considerations come first when the Biden administration chooses to impose high tariffs. At the same time, the United States hopes to support the development of related industries and improve the competitiveness of American companies by imposing additional tariffs. This is typical unilateralism and trade protectionism.

In Liu Ying's view, the United States does not have much competitiveness in these areas where it has imposed tariffs. These Chinese industries will not weaken their international competitiveness because of the US tariffs. Because the United States is not the main target market for China's new energy vehicles, steel and aluminum. The tariffs imposed by the United States may appear to be suppressing China's related industries, but in fact they are an empty fist and will not affect the core competitiveness of China's related industries.

According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers, from January to March, 455,000 new energy vehicles were exported, a year-on-year increase of 17.2%. The top three markets for new energy vehicle exports are Belgium, Brazil and the United Kingdom.

In fact, the US approach undermines global trade rules, cannot enhance the competitiveness of US companies, and cannot protect related industries.

Liu Ying pointed out that the United States has previously imposed tariffs on steel and aluminum, but it has not improved the competitiveness of related steel and aluminum companies or industries in the United States, nor has it truly completed re-industrialization, nor has it achieved its so-called supply chain and The goal of near-shoring and friendly-shoring of the industrial chain.

Peng Zhiwei, director of the Department of International Economics and Trade at Nankai University, told Sino-Singapore Finance that this series of actions by the United States has hindered the adjustment of the world economy by imposing artificial distortions, increased uncertainty in the adjustment process of economic globalization, and will lead to a "multiple losses" in the economy. "the result of.

In his view, the first thing that will be damaged in the United States is consumer welfare. Consumers will have to face higher prices and reduce consumption of related products. Moreover, the medical products affected this time are necessities and may even affect the normal operations of some hospitals in the United States in the short term. At the same time, it will make the already high inflation in the United States even worse.

What's more serious is that trade protectionism will drag down the pace of green transformation of the global economy.

Liu Ying believes that the current global climate change problem is becoming increasingly severe. As the world's largest country and the largest carbon emitter, the United States has not taken the lead. Instead, it has taken trade suppression measures against China, which contributes the most to new energy sources in the world. This will eventually Backfire on itself.

China's new energy products are widely welcomed in the international market, meeting the urgent need for global green transformation and helping to achieve the goals of the Paris Agreement. It is estimated that each new energy vehicle reduces carbon emissions by approximately 1.66 tons per year. China will export 1.203 million new energy vehicles in 2023, which can reduce carbon emissions by approximately 2 million tons per year.

According to the International Renewable Energy Agency, China will contribute more than half of the world's newly installed renewable energy capacity in 2023. At the same time, China's wind power and photovoltaic products have been exported to more than 200 countries and regions around the world, helping these countries and regions, especially developing countries, to obtain clean, reliable and affordable energy.

On the one hand, the United States demands that China take greater responsibility for addressing climate change, but on the other hand, it wields the stick of protectionism to suppress China's green products. How can this be justified?

It is worth mentioning that the United States imposed additional tariffs and accused China of industrial subsidies leading to "overcapacity." However, this view is untenable and is a typical double standard.

In fact, the United States is the largest subsidizer. In recent years, the United States has successively signed the Chip and Science Act and the Inflation Reduction Act, directly intervening in market resource allocation through hundreds of billions of dollars in direct and indirect subsidies.

Liu Ying pointed out that the United States' subsidies for new energy vehicles and semiconductor industries far exceed those of China and even Europe. Various European countries believe that the United States has double standards.

China will not turn a blind eye to the unreasonable practices of the United States. A spokesman for the Ministry of Commerce pointed out that the United States should immediately correct its wrong practices and cancel the additional tariffs imposed on China. China will take resolute measures to defend its rights and interests.

Peng Zhiwei suggested that we should further break down and reduce barriers to the flow of goods and factors between various regions in the country, and accelerate the construction of a unified domestic market, so as to give full play to the advantages of economies of scale and domestic supply chains and reduce production costs. Actively support enterprises to "go global" and, by increasing foreign direct investment, circumvent the artificial trade barriers set up by the United States to the greatest extent possible and stabilize the export of intermediate goods.