That was the announcement Lael Brainard, Biden's national economic adviser, made to reporters before announcing details of new tariffs on Chinese goods focused on electric cars, solar panels and chips.
Brainard stressed that “China is too big to play by its own rules.”
He claims that China is using the same methods it has always used to drive its economic growth, regardless of the impact on other countries.
America accuses China of increasing production capacity in various industries. There is a lot for the Chinese market to buy a lot.
The result is that China is oversupplied in its market. “Dumping the global market”
It is a Chinese export product with very low price.
This is considered an unfair practice towards other countries.
Of course, Beijing vehemently denies this. It is claimed to be a free market competition where each country actually respects the rules.
Under the new rules, customs duties on imports of solar cells and semiconductors from China will double to 50%.
On the other hand, tariffs on certain types of steel and aluminum will rise to 25%, more than three times the current level.
This round of price increases will take effect this year for electric vehicles. Steel, aluminum, solar cells and next year for chips
Biden recently signed new legislation to address the economy, including the Inflation Act, the CHIPS Act, and the Science Act. And infrastructure legislation agreed upon by the two major parties in Congress.
China's Ministry of Commerce suddenly condemned US tariffs as well
A Chinese Ministry of Commerce spokesman accused the United States of practicing politics by using economic tools as weapons.
Beijing insists that such actions by Washington will certainly have an impact on bilateral relations.
America's move comes at a time when Biden aims to strengthen the clean energy sector in the United States.
While demonstrating a commitment to protecting American jobs ahead of the presidential election later this year.
It would not be wrong to see this as a campaign against Americans who want leaders who dare to challenge China.
What is certain is that Donald Trump, Biden's rival, may be playing the same game…unwittingly. He will announce the policy of banning Chinese products more extensively than Biden.
Because he is the owner, the “trade war” with China is very tense.
Biden's opposition to the sale of US steel mills to Japan's Nippon Steel Corporation reflects his strong patriotic stance.
And appease voters in the so-called Rust Belt states.
In fact, the number of Chinese electric cars previously entering the US market was not many. Therefore, this tax increase may have little practical impact.
But it's more about the psychological effects.
None of the major Chinese manufacturers, such as BYD, NIO and Li Auto, have a strong presence in the US market.
The only brand with a Chinese collaboration in the US is Polestar, a collaboration between Chinese company Geely and Swedish brand Volvo.
Most cars of this brand are produced in China.
The company said in February that its plant in South Carolina would begin production in the middle of this year.
A price war is taking place in China's electric car market. After the Chinese government encouraged it by providing strong subsidies.
Which leads to production exceeding demand
Brands like BYD, Geely, Great Wall Motor, and even foreign players like Tesla are competing to cut prices like crazy.
This has raised concerns in overseas markets as Chinese EV manufacturers target exports to overcome domestic issues.
In February, BYD announced plans to establish a factory in Mexico to serve the local market.
But the US government is pressuring the Mexican government to refuse to provide incentives to Chinese electric car manufacturers.
The United States originally expected Biden to reduce tariffs on consumer products of less strategic value, such as clothing, to reduce inflation.
But the US government did not do that.
The reason is that it will create political difficulties in eliminating taxes. Especially in light of the current climate of US-China relations.
It is clear that the relationship between the United States and China will begin to enter combat mode by imposing tariffs on each other.
And this doesn't even include considering TikTok as anything more than a business matter. But it will inevitably extend to political and security issues.
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”