The Central Radio and Television General Station 'International Sharp Appraisal' on July 20th published an article titled "The Secret of American Enterprises in China Obtaining High Profits", which was reprinted by many overseas media.
July 20th to 21st, French Radio LCF radio facebook account, "European Times" German website, "Germany-China News" website, Russia Siberian News Network, Spanish International Radio website, Turkish Economic Observer website, Kazakhstan "Industrial News" "Official website, "Nordic Times" website, American Business News website, European Union Chinese website, Africa Times website, Canada Business News website, Hungarian United News website, Chinese PT portal website, Portuguese newspaper APP (facebook, twitter), etc. Overseas media have forwarded them. On July 21, Hong Kong Ta Kung Pao and Wen Wei Po published this article.
The main reports are as follows:
The US Section 301 Committee will hold a hearing from August 20th to 23rd to discuss the US government's July 10 list of tariffs on China's $200 billion for US exports. The Trump administration said that the United States The reason for this is that China’s misconduct and unfair trade practices, including government subsidies, have caused huge losses to the US. Is this the case?
First, thanks to China's fast-growing economy and huge consumer market, many US companies have been very successful in the Chinese market.
The world's second largest manufacturer of connectors and cable assemblies, the US Amphenol Group has grown rapidly in the Chinese market when it entered the Chinese market. In 2007, Amphenol finally became a monopoly through patents and standards. China's related markets have earned high profits. Currently, Amphenol controls 80% of the market share of the high-speed connector market in China's communications equipment and server industries.
In fact, Amphenol is not the only US company that has achieved great success in the Chinese market. According to statistics, Corning's glass substrates in the US market share more than 50%, China's 10.5 generation glass substrates are all monopolized by Corning. Apple and General Motors, China not only become their production base, but also become the largest consumer market for their products.
Secondly, in order to encourage foreign enterprises to invest, or to develop certain priority industries, Chinese local governments often give a large number of preferential policies and financial support to joint ventures, which not only provides an important boost for the development of American companies, but also becomes a high-profit. source.
After China’s accession to the WTO, a large number of US companies have earned huge profits from China. For example, the two joint ventures of GM in China achieved a total profit of 27.99 billion yuan in 2017, and GM took 13.33 billion yuan in profit. .
As the world's largest integrated circuit consumer market, nearly half of the world's integrated circuit products have been sold to China. Last year, the top 20 integrated circuit companies in the United States had revenues of more than $75 billion in China, accounting for about 35% of the total revenue of these 20 companies.
Washington is launching a trade war against China in the name of protecting US interests. It is difficult to understand that such unilateral measures will benefit these long-awaited American companies in China. The common sense of the international community is that trade wars bring a double loss. , not a win-win situation.