After China took countermeasures, Trump went completely crazy and threatened to continue imposing additional taxes on China if China did not "surrender." China responded: "We will never compromise and will see this through to the end." The national team intervened late at night to stabilize the Chinese market.

Trump

Recently, in the face of China's strong counterattack, Trump made another wild claim. He stated that if China does not cancel its retaliatory tariffs on the United States before April 8, the US will impose an additional 50% tax on China starting April 9, resulting in a total tariff rate as high as 104%. Trump also mentioned that he had previously warned China, but it seems China did not take his words seriously.

This statement from Trump is completely wrong. It's not that China didn't take America's words seriously; rather, China has never intended to compromise with the US from the very beginning. On the morning of April 8, China's Ministry of Commerce responded, stating that China will fight the US to the end, and China will no longer tolerate America's unilateral hegemony. If the US does not stop its actions, China will see this through to the end.

Meanwhile, three major state-owned enterprises—Central Huijin, China Chengtong, and China Guoxin—announced stock purchases, investing over 80 billion yuan in a single day to support the market, directly reducing A-share losses from 14% to 7%. This "national team intervention" not only stabilized investor confidence but also conveyed the message to the international community that "China's economic foundation is solid," indicating that China will not be defeated by the US.

Response from China's Ministry of Commerce

Currently, many state-owned enterprises have released announcements of stock purchases, expressing confidence in the Chinese capital market. Trump's "maximum pressure" strategy appears fierce but actually exposes the困境of US economic policy. The tariffs imposed on Chinese goods by the US are ultimately borne by American consumers and businesses. American citizens are already complaining about soaring prices, leading to nationwide protests.

In addition, America's unilateral tearing up of international trade rules has left allies in a dilemma, with the EU announcing a 25% retaliatory tariff on the US. Although many countries have "compromised" with the US, these compromises are temporary. Trump's "indiscriminate strikes" have turned the US into a "global enemy."

Central Huijin

Trump attempted to use tariffs as a weapon to extort China, and this time China will absolutely not compromise again. The confrontation with the US will inevitably impact the domestic economy. However, as the saying goes, "One punch clears the way for avoiding a hundred punches." If China cannot adopt a tough stance to protect its legitimate rights and interests, the US will treat China as a pushover and further bully China economically without restraint.

Currently, China has reduced its excessive reliance on exports through the "internal circulation" strategy and accelerated the promotion of the Regional Comprehensive Economic Partnership (RCEP), with trade volumes with ASEAN exceeding 1.2 trillion US dollars. This "you do your thing, I'll do mine" strategy has rendered America's tariff stick ineffective.

A-share Market

The next round of competition between China and the US may result in three scenarios. First, there could be a short-term stalemate between the two sides, with Trump continuing to escalate tensions to save face. However, US retailers have already started clearing out Chinese goods, which will exacerbate inflation if this continues. The second scenario involves both parties reaching a "superficial agreement," such as China delaying some countermeasures while the US postpones tax increases.

The third scenario involves a full-scale confrontation between China and the US. The US may increase tariffs again and attempt to ban TikTok or cut off chip supplies, while China might play the "rare earth card," restricting the export of gallium and germanium, directly striking the US military industry and AI sector. From then on, it will be a contest of who is tougher and who is steadier.

Trump's tariff threats resemble a "political reality show," appearing lively but exposing America's anxiety. China's response is to "focus on handling its own affairs well." The outcome of this博弈may prove that, in today's era of retreating globalization, the true winner is not the one with the loudest voice but the one with the strongest foundation.

Original article: https://www.toutiao.com/article/7490805143156359732/

Disclaimer: This article represents the author's personal views. Please express your opinion by clicking the "like/dislike" buttons below.