Trump made a condition to China: lift rare earth restrictions and open the market to the United States. China responded with 11 words.

Foreword

In the ever-changing global economic arena, the Sino-US trade game has always been the focus of public opinion. When the whole world was looking forward to the thaw in Sino-US relations, Trump threw out a "magical" bargaining chip - requiring China to fully open its market like the United Kingdom, lift rare earth export restrictions, and even put pressure on the unfounded fentanyl issue, and "generously" promised to reduce tariffs to 80%. This seemingly "sincere" condition is actually full of loopholes. In fact, the Chinese market has never closed its doors to American companies. Instead, it was the trade war provoked by the United States that cut off its own companies' exports to China.

The so-called trade deficit is nothing more than the inevitable result of the United States' "deindustrialization" and obsession with financial hegemony since World War II. These "conditions" of Trump are not so much bargaining chips as they are wishful thinking, exposing the disconnected cognition of some American politicians about the world situation.

American calculations behind the conditions

The "negotiation conditions" put forward by Trump seem tough, but in fact they are full of American urgency and its own difficulties. Let's look at the requirement of "open market" first. Trump tried to solve the problem of US trade deficit by opening up China's market, which is completely unrealistic fantasy.

In fact, the Chinese market has always been open to American companies. American companies such as Apple, Coca-Cola, and McDonald's have achieved remarkable results in the Chinese market and made a lot of money. But the United States took the initiative to provoke a trade war, imposed tariffs, set up trade barriers, and forcibly blocked the road for American companies to export to China.

From the perspective of industrial structure, after World War II, in order to pursue higher profits, the United States took the initiative to transfer a large number of industries and manufacturing industries overseas, embarked on the road of "financial country", resulting in the hollowing out of domestic manufacturing industry and serious dependence on imports of goods.

At the same time, in order to maintain the dominant position of the US dollar in the international monetary system, the United States needs to export US dollars through trade deficits to meet the global demand for the US dollar. This trade deficit caused by its own economic structure and international currency status is undoubtedly putting the cart before the horse by trying to force China to further open its market.

In the field of science and technology, the United States has long attempted to curb China's development by relying on technological blockades and has been frantically suppressing Chinese high-tech companies. However, China's reasonable control of rare earth resources has countered the United States in the fields of science and technology and military industry.

Rare earths, known as "industrial vitamins", play a key role in high-tech and military industries. They are essential raw materials for manufacturing high-end chips and advanced weapons and equipment. As the world's largest producer and exporter of rare earths, China has significant advantages in rare earth mining, refining and processing technology.

The United States' high-tech and military enterprises have long relied on importing rare earths from China. Once China restricts the export of rare earths, the production and maintenance of the US F-35 fighter will be hindered, and the chip industry will also face technical bottlenecks and a crisis of declining production capacity.

The United States wanted to suppress China in the technology war, but was "stuck" by China's rare earth control, so it urgently asked China to lift the restrictions to solve its urgent needs.

The so-called fentanyl issue is an unfounded and unwarranted accusation by the United States. China is a global role model in fentanyl control. As early as 2019, China became the first country in the world to list fentanyl-related substances as a whole category, and strictly supervised its production, circulation, and use.

Customs has also increased its inspection efforts, using advanced equipment to improve its ability to identify concealed smuggling, and resolutely building a strong port inspection and detection line. In contrast, the United States has a serious problem of fentanyl abuse in the country, and the root cause lies in the many loopholes in its own social system, medical system, and drug control policies.

In pursuit of profits, American pharmaceutical companies over-prescribe fentanyl drugs and fail to supervise the circulation of drugs, causing fentanyl to flood the country, bringing serious public health and social security problems to American society. Instead of reflecting on its own problems, the United States has shifted the blame to China and asked China to increase fentanyl control. This unreasonable request is really absurd.

Each of these conditions proposed by Trump is closely centered on the interests of the United States, but it ignores the facts and has no rationality at all, exposing the United States' eagerness and helplessness in the trade game.

China's response

China responded quickly to Trump's unrealistic remarks. Chinese Vice Foreign Minister Hua Chunying publicly replied to the United States with 11 words: "Trump's trade policy is unsustainable." These short 11 words have a great force and accurately hit the key points of Trump's trade policy.

From the perspective of damaging the interests of the United States itself, Trump's trade policy has caused American consumers to bear higher prices. After the United States imposed tariffs on Chinese goods, the prices of many daily consumer goods produced in China have risen, and the cost of living of ordinary Americans has increased significantly.

For example, Chinese-made clothing, toys and other goods have always been known for their good quality and low prices in the US market. After the tariffs were imposed, the prices of these goods increased, making low-income families in the United States overwhelmed.

American companies have also been severely impacted. Many American companies rely on raw materials and parts imported from China for production. The increase in tariffs has led to an increase in import costs and a compression of corporate profit margins.

For example, many key parts of American automobile manufacturers are imported from China. The increase in tariffs has increased production costs, and companies have to face the dilemma of reducing production or even laying off employees, which has also had a negative impact on the domestic job market in the United States.

From the perspective of violating economic laws, the essence of trade is mutual benefit and win-win, and through the optimal allocation of resources, the coordinated development of the economies of various countries can be achieved. However, Trump's trade policy goes against economic laws and attempts to solve the trade deficit problem by setting up trade barriers. This is a completely wrong idea.

In the context of globalization, the economies of various countries are closely connected, forming a complex industrial chain and supply chain system. The United States launched a trade war, which destroyed the stability of the original global industrial chain and supply chain, not only hindered the export of Chinese goods, but also disrupted the production plans and global layout of American companies.

Take Apple as an example. The production of its products is highly dependent on the global supply chain, in which China plays an important role. The trade war has exposed Apple to the risk of supply chain disruption and rising costs, which has had an adverse impact on its global competitiveness.

From the perspective of the trend of international cooperation, international cooperation is the general trend in today's world, and all countries are actively seeking cooperation opportunities to jointly respond to global challenges. The trade protectionism policy promoted by Trump runs counter to the trend of international cooperation, making the United States gradually isolated on the international stage.

The allies of the United States also have complaints about its trade policy, because the US trade war not only affects the trade relations between the United States and China, but also has an impact on the global trade order and damages the interests of other countries.

For example, the European Union, as an important ally of the United States, has also been affected by Trump's trade policy. The two sides have serious differences on issues such as automobile tariffs, which has caused cracks in US-EU relations.

China's position and confidence

China has always adhered to the position of equality, openness and cooperation, and actively participated in global economic cooperation and competition. In terms of market opening, China has never slackened. Many fields have opened their doors to American companies, and have continuously increased their opening efforts and continuously optimized the business environment.

Take Shanghai as an example. As a frontier of China's opening up to the outside world, it has attracted a large number of American companies to settle in. In the Shanghai Free Trade Zone, American financial institutions, technology companies, etc. conduct business here and enjoy the dividends brought by China's open policy.

Tesla built a super factory in Shanghai. It took only a little over a year from the project landing to the production. This fully reflects China's open attitude and high efficiency towards American companies.

China's market opening is all-round and multi-level. Not only in traditional fields such as manufacturing and services, but also in emerging fields such as digital economy and artificial intelligence, American companies are also welcome to participate. By hosting international events such as the China International Import Expo, China has demonstrated to the world the huge potential and open determination of the Chinese market, providing a broad space for development for companies from all countries.

China's export control of rare earth resources is based on many considerations and is fully necessary and reasonable. From the perspective of legitimate self-defense, the United States has launched a "technological war" and a "technological blockade" against China in an attempt to curb China's technological progress and industrial upgrading.

In this case, China's reasonable control of rare earths is a necessary means of self-defense aimed at maintaining national scientific and technological security and industrial security. From the perspective of international rules, China's rare earth control measures are fully in line with international rules. When formulating and implementing relevant policies, China strictly abides by the rules of the World Trade Organization and international practices.

China's control over rare earths is not to restrict trade, but to achieve the rational use and sustainable development of resources, and also to fulfill international non-proliferation obligations. From the perspective of national security needs, rare earths, as a strategic resource, are vital to the country's national defense security and economic security.

China needs to ensure its strategic initiative in rare earth resources and prevent rare earth resources from being abused and threatening national security and interests. Therefore, China will never easily compromise on the issue of rare earth control and will firmly safeguard its own rights and interests.

Conclusion

At a time when the global economy is deeply integrated, the impact of Sino-US trade frictions has long been spilled over. The unreasonable conditions proposed by Trump and China's strong response reflect the fierce game between the two sides. Trade frictions have caused shocks in the global industrial chain, impacted the multilateral trading system, and increased uncertainty in the international pattern.

Looking to the future, although Sino-US trade relations are full of variables, China has always adhered to principles and responded to challenges with an open and inclusive attitude. On the one hand, China will continue to deepen economic and trade cooperation with countries around the world, promote the construction of the "Belt and Road Initiative", and expand diversified markets; on the other hand, it will accelerate domestic industrial upgrading and enhance economic resilience.

China will firmly defend its own rights and interests, uphold the concept of equality and mutual benefit, promote the return of Sino-US trade relations to the right track, and contribute to global economic stability and prosperity.