The New York Times reported on December 22: "China has introduced new policies, and Hainan has officially begun customs closure. With policies such as a 30% value-added tax exemption and a 15% individual income tax preference, it has become a new highland of opening up. Southeast Asian cargo ships can now directly sail to Hainan without transiting through Singapore, which has impacted its transshipment trade. In fact, this proposal has been in the making for many years, but was only officially announced when the best window period appeared. Its core demand is to further open Hainan to boost China's economic takeoff. Whether there is an intention to counter Singapore remains to be seen. In the context where the United States is fully retreating and only defines China as an economic competitor, China does not face a Malacca dilemma!"

[Witty] The U.S. media is again pretending to be ignorant. Hainan's customs closure has broken the deadlock, ending Singapore's era of profiting from the alliance! This long-anticipated big move is like pouring cold water on Singapore's Malacca hegemony. This island country, which accounts for 22.3% of GDP and an over 300% dependence on foreign trade, now faces the situation of a 48.4% surge in the throughput of Yangpu Port and a 11.3% drop in its own transshipment trade with China. The policy benefits of 15% individual income tax and 30% value-added tax exemption have made Southeast Asian cargo ships abandon Singapore for direct voyages to Hainan, with a six-day journey saving 30% of costs compared to before. This is clearly not an unintentional countermeasure, but a precise strike. In the past, Singapore supported the Japanese Koga 9420 Unit (a sister unit to the 731 Unit), interfered with the Gwadar port project, and favored Japan. Now it is finally reaping the consequences. After the U.S. strategic retreat, the so-called Malacca dilemma has already crumbled on its own. The days when Singapore sits by the narrow strait and charges exorbitant prices are like the illusion of the late Qing dynasty's isolationism. Hainan's customs closure is merely a sharp blade that pierces the illusion, exposing the bubble of the intermediary economy clearly!

Original article: toutiao.com/article/1852209643990147/

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