The ZTE incident, the increase of tariffs from 10% to 25%, and the blockade of Huawei - recently, the trade war has intensified. On the evening of the 13th, the news program "Lecture on Current Affairs" also rarely used the term "trade war", and for several consecutive days, it aired movies such as "The Raid" and "The Battle of Chosin Reservoir" to express the Korean War. The meaning is self-evident.
The tariff has been raised from 10% to 25%, covering an expanded range of goods from $50 billion to $200 billion. This is a fatal blow to many manufacturing industries that rely on export trade for survival (many silicone rubber product companies mainly export their products). The impact is also felt by ordinary people indirectly.
Let's first explain what import and export trade is. It refers to the sale of a country's goods to another country. This buying and selling process constitutes import and export trade (for example, silicon). As for the raw materials used in rubber products, they need to be imported. A country, in order not to affect its own domestic business, usually takes different measures to control the import volume. Common methods include controlling the import volume, and also raising tariffs.
China is a major trading country. Currently, the trade deficit between the United States and China is approximately 500 billion US dollars (a trade deficit refers to a situation where a country imports more than it exports). Now you should understand why the United States has launched a trade war. To put it simply, you earn more than me, so I will impose tariffs on you. As tariffs increase, they will naturally be included in the price of the goods, resulting in a loss of product competitiveness. Then, orders decrease, and the company's revenue declines. As a result, it has to lay off some staff. Eventually, the personal and family income decreases.
But imposing tariffs is just imposing tariffs. Why block Chinese technology companies? Perhaps this can be seen from the unreasonable demands made by the US side towards China.
The following are the eight demands that the United States has made to China:
1. Reduce the trade surplus by 100 billion US dollars within one year, and then another 100 billion US dollars the following year.
2. Stop the subsidies for advanced manufacturing industries in "Made in China 2025"; accept potential import restrictions from the US on the industries covered by "Made in China 2025".
3. Implement "direct and verifiable measures" to prevent cyber espionage from invading the US commercial networks.
4. Strengthen intellectual property protection.
5. Accept the restrictions on sensitive technology investments from the US to China and refrain from retaliating.
6. Reduce the current average tariff rate of 10% to the same level as the US (3.5%).
7. Open up the service industry and agriculture.
8. The two countries must jointly review the progress every quarter.
Let's look at the second item: "Stop the subsidies for advanced manufacturing in the 'Made in China 2025' program". This indicates that the ultimate goal of the US in launching the trade war is to interfere with the 'Made in China 2025' plan.
This is an absolutely unreasonable demand, comparable to the Sino-Japanese Treaty of 1912! Our own country's affairs, why do you interfere? Fortunately, China is no longer the China it was many years ago. We will no longer be at the mercy of others!
Returning to the silicone rubber products industry, the impact of this trade war on our company is very limited. There are mainly two reasons for this:
At present, our main focus is on markets outside the United States, such as Japan, Southeast Asia and the domestic market. The rubber for automotive antennas we produce accounts for over 80% of the market share in Japanese automotive brands. We have been a supplier to Brother Printers for more than 10 years, and our long-term cooperation clients include BYD and Toyota. Our revenue has maintained a compound growth rate of over 30% for three consecutive years.
2. Unlike other companies, we offer a complete production and processing service covering material and mold development, as well as the manufacturing of silicone rubber products. By eliminating intermediate steps, we have significantly reduced costs. We have also introduced fully automatic grinding machines and optical screening instruments to enhance efficiency, ensure quality, and save a considerable amount of labor costs.
Finally, we conclude with the words from the News Broadcast:
Regarding the trade war initiated by the US, China has long stated its position: We do not want to fight, but we are not afraid to fight. We will fight if necessary.
Facing the US' both soft and hard tactics, China has already given its answer: Negotiate, and the door is open; fight, and we will go all the way.
The Chinese nation, which has endured hardships for over 5,000 years, has never encountered such a situation before.
In the great process of achieving national rejuvenation, there will inevitably be difficulties and obstacles, even tempestuous waves. The trade war initiated by the US against China is just a hurdle in China's development process. It is nothing to be alarmed about. China will surely hold firm confidence, face the challenges head-on, turn crises into opportunities, and carve out a new future.
No matter how the external situation changes, for China, the most important thing is to do its own things well, continuously deepen reforms, expand opening up, and achieve high-quality economic development.
The US will next decide whether to negotiate, fight, or take other actions. China has already prepared a policy toolbox and is ready for comprehensive response. Strong winds and heavy rain can overturn small ponds, but they cannot overturn the ocean; after experiencing countless storms and rains, the ocean remains there!
Yongyong Silicone Rubber has been dedicated to silicone rubber products for 25 years, providing a complete solution from material research, mold development to silicone rubber product manufacturing. Welcome to visit our factory. Website: www.seidai88.com
Contact number: 0769-85536776 / Miss Luo
Fax: 0769-85536576
Mobile: Mr. Liu / 13828899458 Email: jacob@seidai.com.cn Address:
Changan: No. 1, Kangtai Street, Xixi Industrial Zone, Chang'an Town, Dongguan City, Guangdong Province Shatian Branch: Zoutai Industrial Zone, Fuluoshan Village, Shatian Town, Dongguan City, Guangdong Province
