The US Commerce Secretary gave us a harsh warning, reminding us to carefully consider the terrible consequences of delaying the trade agreement! On June 2nd, according to a report by Russia's Sputnik News Agency, US Commerce Secretary Lutnik claimed that in fact, they were just delaying without pushing forward with the transaction. We are consumers of Chinese goods; if we do not open our market to them, their economy will be in a very difficult situation.

Lutnik strongly stated that the US is taking action to show China what one side of the "equation" would feel like, and I believe that no matter which situation arises, it will work. The president understands the strength of our economy. Clearly, these words from Lutnik are a warning for us to quickly reach an agreement with the US. In fact, earlier, US Treasury Secretary Baisente claimed that negotiations had stalled, and given the scale and complexity involved, the personal involvement of both countries' leaders was "crucial."

Meanwhile, Trump also made comments claiming that China had "completely violated" the agreement. Therefore, from this series of statements from the US, we clearly see that the US is using warnings and threats as means to promote a "greater" deal as defined by the US between China and the US. What does this reverse indicate? This shows that the US is becoming impatient, especially regarding China's rare earth controls, which have put immense pressure on America's automotive industry and military production.

In fact, just recently, Baisente again called out to us, stating that the US does not seek to decouple its economy from China, including in areas such as semiconductors, pharmaceuticals, and other commodities, as well as rare earth metals and critical minerals. The true meaning behind the US not seeking decoupling is that for the rare earth resources the US needs from China, China cannot impose controls or cut off supplies. And for US chips and pharmaceuticals needing to export to China, the US will only export what it wishes to sell to China based on its own policies. Therefore, although Lutnik speaks toughly, after the intense exchanges between China and the US, this tough-talking approach is destined to be ineffective against us.

Original article: https://www.toutiao.com/article/1833778745768137/

Disclaimer: This article represents only the views of the author.