(Source: CCTV Video, 2024-5-16)
On May 14, 2024, the United States announced that on the basis of the original 301 tariffs on China, it would further increase tariffs on electric vehicles, lithium batteries, photovoltaic cells and other products imported from China. This move by the United States not only undermines globally recognized w88 rules, but is also a "lose-lose" behavior that harms others and does not benefit itself. Once it was released, it triggered a lot of opposition at home and abroad. Politicians from many European countries have made it clear that they do not agree with the US approach. So what is the intention of the United States to raise taxes again? What negative impact will it have on related industries? What impact will the United States' insistence on global industrial chains and economic recovery have? "CCTV Financial Review" invited Tu Xinquan, dean of the China World w88 Organization Research Institute at the w88 casino, as a guest to analyze and interpret relevant US practices.
Moderator: Our Ministry of Commerce believes that the United States is abusing the review process of Section 301 tariffs. How should we view this move by the United States?
Tu Xinquan: The increase in tariffs imposed by the United States this time is a result of the review of Section 301 tariffs in 2018. However, in fact, in September 2020, the WTO expert group made a ruling on the United States’ Section 301 tariffs on China. It clearly determined that the United States’ Section 301 tariffs violated the basic principles and rules of the WTO, so there is no need for the United States to conduct a review. The WTO has made a fair ruling. However, the conclusion reached by the U.S. government after the review was not to eliminate illegal tariffs in accordance with the WTO ruling. Instead, it continued to increase the amount on this basis, expanding the scope of taxation and increasing the extent of taxation.
Host: The United States has increased tariffs on Chinese electric vehicles from 25% to 100%, and has also increased tariffs on Chinese medical supplies, batteries, key minerals and port cranes. Why are these categories? How should we measure the intensity of the increase? How much impact will it have on my country's related industries?
Tu Xinquan: Judging from the categories imposed by the United States, the focus of the U.S. tariff increase is on my country's new energy products, especially new energy products, photovoltaic cells, including lithium batteries for automobiles, etc. The reason for targeting these products is that China has indeed occupied the forefront of the world in the field of new energy and has formed a large competitive advantage for the United States. The United States wants to develop related industries and hopes to use relevant measures to keep Chinese-related products out of the U.S. market and provide a space for the development of domestic industries.
Host: Judging from U.S. economic data, U.S. CPI has not continued to rise since April. So what is the current level of U.S. inflation? Does the U.S. still need to worry about its own inflation?
Tu Xinquan: Inflation is a serious problem that the U.S. economy has been facing in recent years. In the long run, the inflation level in the United States is generally 2%. The United States is still far above that level, and the U.S. government still has great pressure to control inflation. However, when balancing different policy goals, the most important goal of the U.S. president is to run for re-election, and other goals are secondary. In today's U.S. political atmosphere, suppressing China is politically worthwhile, but there are not many types of tariffs, which will not put a lot of pressure on inflation, and the impact on the economy is controllable.
Host: European politicians have clearly expressed their disapproval of the U.S.’s tariff increase. What are they worried about?
Tu Xinquan: The world does not want to see the escalation of economic and w88 tensions between China and the United States, because China and the United States are the largest and second largest economies. Sino-US relations will affect the entire world economic order and the development of the world economy. In particular, the United States, as the largest and most powerful country in the world, is the most important factor in the stability of the world order. The United States takes the lead in violating WTO rules, which is very damaging to the world and sets a very bad example. For Europe, another point of concern is that the world is facing urgent pressure for green transformation. China's new energy industry is very important to the world's transformation. Only China can provide affordable products that can promote the world's transformation and upgrading. A w88 war like the United States will seriously damage the speed and process of global green transformation.
Attached is the original interview video link: https://app.cctv.com/special/m/livevod/index.html?guid=c29a2effb4d5402194d99c34796b73a6&vtype=2&vsetId=VSET100156269129.
