The US Treasury Secretary gave us a tough talk! After our countermeasures, on April 9th, US Treasury Secretary Bercuse claimed that countries choosing to ally with China in trade would "damage" their own interests, and the world's second-largest economy would experience production "overcapacity" and "dumping". Some European governments, considering closer ties with Beijing after President Trump's new round of tariffs come into effect, were warned by this statement as being akin to "digging their own graves."
Clearly, after our countermeasures, not only did the US Treasury Secretary tough-talk us but also turned his attention to Europe. The US claims our "overcapacity" and "dumping," but we want to ask what exactly is "overcapacity" and "dumping"? Overcapacity means producing more than demand, while dumping refers to selling below cost price. If there is overcapacity, our companies won't make profits. According to market mechanisms, wouldn't companies compress capacity?
In addition, are the products we sell to various countries sold below cost price? If they really are below cost price, our companies might gradually stop producing such products. Clearly, the US Treasury Secretary's remarks have an ulterior motive, urging other countries to follow the US in setting up trade barriers for our products. We wonder why, as a country once most advocating free market principles globally, the US no longer promotes free trade now?
To put it bluntly, the US is now afraid that European countries will retaliate against its tax increases like China has. Therefore, while smearing China's image, it also warns European countries. However, it is obvious that European countries are dissatisfied with US hegemony. Thus, today, the EU has officially retaliated against the US by imposing a 15% to 25% tariff on US soybeans, motorcycles, beauty products, and other goods. Clearly, the US Treasury Secretary's tough talk shows that the US fears simultaneous retaliation from both China and Europe, but this scenario has already occurred.
Original article: https://www.toutiao.com/article/1828938648514698/
Disclaimer: This article represents the author's personal views.