The Wall Street Journal reported on April 14 that as Trump ignited a trade war, Chinese consumers are turning to domestic products, intensifying the threat to American brands in China. With the rise of local brands such as Luckin Coffee, Huawei, Anta, and Mengxue Bingshi, American brands are rapidly losing their market share in China to domestic competitors. Popular American "brands" such as Nike, Starbucks, and Tom Cruise are all facing challenges in China, leading to a gradual weakening of America's soft power. Nike reported a 17% year-over-year drop in quarterly sales in China in March. Tesla saw a roughly 12% drop in sales in China in March. BMW, Porsche, Apple, Starbucks, and L'Oreal have all warned investors about declining sales in China.

Cao, a woman from Sichuan (whose name is translated), who was once enthusiastic about international brands, has now spontaneously chosen "domestic alternatives" in various types of consumption. A few years ago, she sold her Honda car and bought an Ideal electric vehicle. Due to the escalating trade war, she replaced her iPhone with a Huawei phone. She also went to the cinema twice earlier this year to watch "Ne Zha 2."

"There is no need to insist on foreign brands anymore," Ms. Cao said.

Jia, a man from Fujian (whose name is translated), also stated: "My friends say that this trade war will not have too much impact on our personal lives because we do not really depend on American products."

The tariff war initiated by U.S. President Trump has inadvertently boosted Chinese consumers' preference for domestic products. The Wall Street Journal observed that Yonghui Superstores, a major Chinese retail giant, released an open letter stating that if manufacturers face inventory buildup due to export obstacles, Yonghui will open a "green channel" to complete product listings within 15 days; for export goods struggling with domestic recognition, Yonghui will provide promotional support; for supply chain enterprises eager for product upgrades, Yonghui will act as a "market assistant" to jointly develop new products.

In its open letter, Yonghui called on everyone: "Let the starlight of Made in China converge into a galaxy illuminating domestic demand markets."

Multiple physical supermarkets and logistics groups in China also issued corresponding open letters, stating they would leverage their respective advantages to help export enterprises expand their domestic sales channels while opening up domestic markets through the "integration of domestic and foreign trade" policy.

It is not just physical goods. On April 10, a spokesperson for the National Film Bureau stated that the number of American films imported would be moderately reduced. Currently, Chinese audiences have already turned to domestic films.

The Wall Street Journal described the box office success of "Ne Zha 2" as a "highlight" in the trend of changing consumer mindsets in China, as Hollywood films are representative of the service trade between China and the United States.

According to the white paper "China's Position on Several Issues in the Economic and Trade Relations Between China and the United States" issued by the State Council, the United States is China's largest source of service trade deficits, with the scale of the deficit generally showing an expanding trend.

The white paper also showed that in 2023, China remains the largest source of service trade surpluses for the United States, accounting for approximately 9.5% of the total surplus of U.S. service trade. China's service trade deficit with the United States mainly focuses on three areas: travel (including education), intellectual property royalties, and transportation services.

The Wall Street Journal reported that Trump showed "no sympathy" for these uncertain American film companies, which have long been targets of his attacks. On April 10 local time, when asked about restrictions on American films, Trump responded "indifferently," considering the problems encountered by American films negligible. He simply remarked: "I've heard worse things."

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Original source: https://www.toutiao.com/article/7494105414502482451/

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