Author: vertical and horizontal source: Zhonghua city (id:hqsycn)
U.S. inflation remains high. Treasury Secretary Yellen, commerce secretary raymondo and Biden have expressed their willingness to cut tariffs on China for many times. Only U.S. trade representative Dai Qi disagrees. Her open reason is that “fighting inflation is much more complicated, and paying attention to tariffs on China is not enough!”
Why did Dai Qi persist in opposing the reduction of tariffs on China?
There are three reasons:
1. Unwilling to give up combat weapons against China
In terms of trade, tariff is an important weapon of war. The means available to the United States are limited. If the United States unilaterally abandons tariff, the means available to the United States, especially Dai Qi, a trade representative, will be even more limited.
With a weapon in hand, even if it is useless, it will be much more secure psychologically.
? video screenshot of Dai Qi
2. Unwilling to reduce personal influence
Many members of Biden’s team are old acquaintances of Biden. For example, Antony Blinken worked with Biden 20 years ago, and Sullivan became his national adviser when Biden was still vice president.
Dai Qi is just an outsider.
In addition to her strong performance in the rare earth lawsuit with China and the negotiation of the US Mexico Canada trade agreement in 2012, which won the favor of the US Congress, the reason why she became the US trade representative also lies in the fact that the United States wants to benefit from her Chinese identity and proficiency in Mandarin in the negotiations with China.
However, the delay in Sino US trade negotiations means that the value of Dai Qi will continue to decline.
Tariff is an important weapon for Dai Qi to fight against China and an important means to reflect its value. If Dai Qi hands over such weapons at this time, what will she have left? For her, her bare hands will only make her more marginalized in Biden’s team.
In view of this, everyone knows to oppose it.
3. Unable to explain to interest groups in the United States that “insist on tariffs”
As explained earlier, the reason why trump advocated “America first” is that a considerable number of Americans have become “the damaged class of globalization”. They are eager to return the manufacturing industry to the United States. Therefore, protectionism and trade war with other countries are one of his means.
Financial capital has no motherland, and it will go wherever it is advantageous. However, industrial capital has a motherland. The trade war launched by the United States reflects the protectionism of industrial capital.
In addition, Dai Qi’s main backer is the American trade union. As mentioned above, many American workers hope to bring the manufacturing industry back to the United States through the trade war.
It can be seen that there are still quite a number of interest groups in the United States who want to maintain the tariff policy. This is also the reason why the Biden administration has been in power for more than a year and still dare not easily abolish the tariff. The conservative forces are still strong.
As a trade representative, Dai Qi dare not cancel her position at will, otherwise she can not explain to those interest groups who insist on tariffs.
Another point is that Dai Qi, forced by her Chinese identity, must be tougher than genuine Americans to show her loyalty to the United States in order to reassure the United States.
The above-mentioned points are the reason why Dai Qi is so stubborn that she still refuses to let go when Biden, Yellen, raymondo and other senior American officials have all expressed their views.
However, the mid-term election is coming. Although tariff reduction is limited to reducing inflation (about 1.3%), Biden, who can’t do anything, has to do something in the case of “election overriding”. If Dai Qi continues to confront Biden, she will either not stay in the “trade representative” position for a long time, or she will be marginalized. After all, Biden is the big boss of the White House.
As far as China is concerned, it is no longer important for Dai Qisong not to let go and for the United States not to abolish tariffs on China. Just as the United States has imposed more than 1000 sanctions on Russia, Russia has adapted to the sanctions. Now China has also adapted to tariffs. China US trade is business as usual. Even if tariffs are abolished, it will not stimulate China’s economy; In addition, China has low inflation and the United States has high inflation. The situation is that the United States is in a hurry and China is not in a hurry at all!
The United States itself may not realize that it is no longer a question of whether the United States will cancel tariffs on China. If it wants China to cancel tariffs on the United States equally, I am afraid it is not the original price. It is not only about trade, but also about a package of issues such as scientific and technological sanctions against China and sanctions against Xinjiang. In a word, it’s up to you, the United States, to start a trade war. But if you want to end it, I’m afraid you can’t end it if you want to!