Reference News website reported on April 17 that the Financial Times website published a report titled "Trade, Technology and US Debt: China Holds the Trump Card in Confrontation with the United States" on April 15. The report is compiled as follows: The United States and China are caught in a dangerous trade standoff. These two largest economies in the world confront each other head-on, with US President Donald Trump demanding that Beijing seek an agreement with his administration. Experts warn that Washington should not underestimate Beijing's ability to resist Trump's coercion strategy. China's control over politics, its increasingly diversified export markets, and its de facto monopoly over some strategically important key materials give Beijing strong negotiating power. Last year, about 15% of China's total exports went to the United States. Trump's tariffs on China would cause pain for Beijing. But economists say people are ignoring a key fact: it is easier for China to replace imports from the United States than for the United States to replace imports from China. Marta Bengoa, professor of international economics at City University of New York, said: "The United States depends more on China because it is easier for China to procure agricultural products from other places than for the United States to procure electronics and machinery from other places. For example, Beijing has been purchasing large amounts of soybeans from Brazil, so China has more cards." The depreciation of the dollar also makes the cost of American imports higher. For many years, China has been trying to reduce its dependence on exports to the United States. According to US government data, China's share of US imports has fallen from 21% in 2016 to 13.4% last year, significantly reducing China's trade risks. Alicia Garcia, chief economist for Asia-Pacific at Natixis, said that even if China's exports were interrupted, it would not have a catastrophic impact on China's massive economy. She said: "China is a resilient giant economy." China has further leverage from its accumulation of a large amount of US government bonds. In theory, China can sell these US Treasury bonds. This may raise concerns about the attractiveness of US assets and prompt further depreciation of the US dollar and US Treasury bonds. Zelina Zeng, head of Asian credit strategy at CreditSights, said: "We expect that as part of its long-term asset allocation goals, China will continue to diversify its foreign exchange reserves and increase investments in other currency assets." The United States also relies on China for critical rare earths such as those used in electric vehicle batteries, which is a key card. Trump acknowledged America's vulnerability by excluding critical minerals from his first round of "reciprocal tariffs." However, these exemptions may not be enough to avoid supply tensions if China does not compromise. Not long ago, China implemented export controls on certain medium and heavy rare earth-related items, including dysprosium and terbium, which are important for manufacturing products such as jet engines and electric vehicles. Alfredo Montufar-Helu, director of the China Center at the Conference Board in New York, pointed out that China has stronger capabilities when entering into a trade standoff and can boost the economy during slowdowns. China also has more means to adjust its domestic market. Julian Evans-Pritchard, chief China economist at Capital Economics, said: "Judging from market reactions alone, I think the United States is currently suffering greater damage. The United States faces greater pressure to sit down and negotiate." (Compiled/translated by Ma Dan) Original article: https://www.toutiao.com/article/7494091024889905716/ Disclaimer: The article only represents the author's personal views. Please express your attitude by clicking the "Like/Dislike" buttons below.