Trump’s first priority is environmental protection and energy.
That is to say, withdrawing from the Paris Climate Agreement and lifting restrictions on various energy investments and greenhouse gas emissions. This will maintain a truthful increase in investment and relatively low global energy prices during his tenure,
The second issue that Trump wants to initiate is immigration.
That is to strictly block the entry of illegal immigrants, stop zero dollar purchases, and repatriate illegal immigrants. This will ensure that the United States maintains a high employment rate and labor costs/wages remain high during his tenure.
The third issue that Trump wants to initiate is the tariff problem.
That is to say, imposing high tariffs on major countries around the world and requiring them to purchase American goods. This will increase the sales and profits of the US manufacturing industry during his tenure, and encourage manufacturing companies to return to the United States.
The fourth issue that Trump wants to activate is the exchange rate problem.
That is to say, to maintain a relatively strong US dollar, which will promote the convergence of global capital to the United States during his tenure, and reduce the difficulty of financing for American companies.
The fifth issue that Trump wants to initiate is the tax rate.
That is to say, to lower the corporate tax rate, which will lead to a significant increase in profits for American companies during his tenure.
The sixth issue that Trump wants to initiate is regulatory.
That is to say, the cancellation of a series of restrictions and anti-monopoly measures proposed by the Democratic Party will lead to a surge in expected revenue for American companies and maintain high stock prices during his tenure.
If you connect these six Trump reforms together, you will find that:
Trump’s reform strategy is to focus on upstream rather than downstream, to involve energy giants and financial giants, to lower their profit margins and block overseas manufacturing competitors, giving all market profits to American manufacturing companies.
More importantly, while squeezing the upstream to increase the profit margin of high-end manufacturing in the United States, he also vigorously eliminates low-end American immigrants and increases labor costs in the manufacturing industry. This will lead to breakthroughs in new quality productivity in the United States, represented by Musk.
In the past, these new quality enterprises faced a series of problems such as financing difficulties, insufficient market, and regulatory restrictions, such as autonomous driving and service-oriented robots. Due to their serious damage to employment, they also faced resistance from the public.
But now these issues will be systematically addressed under the new government’s series of economic policies, and the ultimate result is that a conservative government will create a series of high-quality developments.
For China, this situation means that with the acceleration of the United States, we will shift from the original “strengthening the foundation and nurturing the yuan” style of high-quality development to a “strong medicine” style of acceleration, providing greater support to China’s powerful enterprises and local governments.
How to do it specifically? We can learn from Trump’s 10 trillion yuan stimulus policy after his election.
There is no expected consumer stimulus in the market, which can be compared to Trump’s immigration policy, efforts to replace local government debt, and Trump’s tax reduction policy.
It can be said that the two major countries that work together to achieve high-quality development have remarkably similar ideas.
The difference is that China is ahead of the United States this time.
We can pay attention to the new economic stimulus after 10 trillion, as well as the Sinicized variants of Trump’s series of economic policies.