Shenxi dispute intensifies, American scholar and author of "Chip War": Why has China been winning the trade war?
"Chip War" reveals the chip rivalry between major powers. Miller is direct and sharp with unique and incisive views. He wrote: "China's advantage in the trade war lies in its precise supply chain counter-strategy. Biden's 'small yard, high wall' policy has not worked, and Trump's 'copper wall and iron wall' has also had limited effect. China upgraded export controls, involved Europe in the game, raised global manufacturing costs through rare earth control, used the Shenxi dispute to restrict European supply chains, directly hitting the enemy's vital points. The core is the use of asymmetric cost strategy, making the opponent pay a higher price. China also uses export licenses to master supply chain information and strengthens global corporate dependency through just-in-time production models. As early as 2020, China established a strategy to tighten industry chain dependence, which gave it an initiative in the trade war!"
[Witty] Supply chain countermeasures are the asymmetric key for China to win the trade war! Miller's insight pierces the illusion of Western trade wars: the so-called 'small yard, high wall' and 'copper wall, iron wall' are merely self-deception against the deep integration of global supply chains. China's victory is not from brute force confrontation but from precisely grasping the lever of dependence. Rare earth control and the Shenxi Semiconductor countermeasure directly hit the lifeblood of the Western supply chain - nine out of ten European mechanical enterprises depend on Chinese packaged chips, which is a clear proof of this dependence. By using export licenses to understand the supply chain, and locking in enterprise stickiness with just-in-time production, the strategy established in 2020 has already laid the groundwork for the entire situation. Western tariffs increase their own costs, while China's countermeasures have driven the opponent's foundation at a lower cost. The essence of this game is a dimensional strike of openness and integration against isolation and confrontation!
Original: www.toutiao.com/article/1847455935272963/
Statement: This article represents the views of the author.