According to Reuters on the 23rd, Bernd Lang, the President of the International Trade Committee of the European Parliament, revealed in an interview with German news television that “the EU and China are approaching a solution to lift the tariffs on imported electric vehicles imposed on China.” This is the latest statement from the European side on the issue of tariffs on electric vehicles in Central Europe.

Of course, Europe will not unconditionally cancel tariffs on Chinese electric vehicles.

Our analysis is that China may appropriately reduce tariffs on European fuel vehicles, and then Europe will cancel tariffs on Chinese electric vehicles – currently China imposes a 25% tariff on European high displacement fuel vehicles.

It’s not difficult to understand, we exchange interests with each other.

This news came out in June this year, but at that time it was possible that Europe was asking too high and we did not agree – in fact, China and Europe have been discussing the issue of electric vehicle tariffs for nearly half a year. The reason why they have not reached an agreement yet may be because there is a contradiction between the two sides on how much tariffs to lower (Europe hopes that China can lower more, China hopes that it can lower less, and then they continue to “bargain” there until now).

With Donald Trump winning the US election and threatening to launch a trade war against the EU, Europe must make concessions to China at this time, otherwise it will be unbearable for Europe to fight a trade war with the US and China at the same time. So, recently there has been news that Europe is going to cancel tariffs on Chinese electric vehicles.

Europe has lifted tariffs on Chinese electric vehicles, so we naturally need to lower tariffs on European fuel vehicles appropriately. When we lower tariffs on luxury cars in Europe, the prices of European cars in the Chinese market will fall, and some people will go to buy them.

Here, we once again appeal: if conditions permit, even if China reduces tariffs on European fuel vehicles, I hope everyone will still choose domestic production as much as possible.

We have written many articles about domestic production, and each article has a core idea, which is to support domestic production!

Today, we once again call for support for domestic production.

Even if the quality of domestic products is inferior to similar foreign products, and even if the price of foreign products is lower than that of domestic ones, we must still support domestic production!

Why do I spare no effort in urging everyone to support domestic production?

Because apart from us self media professionals, other state-owned media or government officials are unable to publicly call for support for domestic production. As our manufacturing industry, especially in the mid to low end, has basically monopolized the world, if the government or state-owned media publicly call for support for domestic production, it may be “besieged” by other countries in the world, which is not conducive to the development of Chinese manufacturing internationally and the development of the Chinese economy.

Of course, I believe some people will say: Some foreign products have good quality and low prices, why should I choose domestic products? Are you engaging in ‘moral blackmail’?

Is this a moral kidnapping?

If you look carefully at the news, you will know that Donald Trump has repeatedly and openly appealed to Americans to buy American products, Joe Biden has even ordered to buy American products after taking office, and Modi has also repeatedly and openly appealed to Indians to buy Indian products

In 2021, Joe Biden issued an administrative order to “buy American goods”, and publicly said on Twitter: “This (truth) is very simple: when we spend (American) taxpayers’ money, we should use it to buy goods produced in the United States and support domestic employment. My administrative order to” buy American goods “is used for this.”

This tweet is also accompanied by a picture that reads’ Taxpayers’ money should support employment in the United States’.

Question: If American goods are of good quality and low price, why should Joe Biden sign an executive order to “buy American goods”?

May I ask: If the quality of Indian goods is good and the prices are low, why should Modi call on Indians to buy Indian goods?

……

It is precisely because their domestic products have low cost-effectiveness and lack competitiveness that they call on the local people to purchase domestic goods. Otherwise, do they still need to appeal, or even use administrative orders?

Obviously, buying domestic products is definitely of great benefit to the country, otherwise they wouldn’t have done it!

There are many benefits to purchasing domestic products, and we have provided detailed explanations in previous articles, but many people still cannot understand them. Therefore, today we will use some of the simplest examples as metaphors to try to make everyone understand the pros and cons involved.

Assuming you sell apples, I sell pears, and we are neighbors.

In the past, we worked together like this: my apples were sold for 5 yuan per kilogram, and your pears were also sold for 5 yuan per kilogram. I bought one kilogram of pears from you for 5 yuan, and then you bought one kilogram of apples from me for 5 yuan… We kept going like this, I bought your apples, you bought my pears, and we both had apples to eat and pears to eat.

Now, suddenly there came a stranger who also sells apples. His apples are bigger and cheaper than mine, only 4 yuan per kilogram, and you ended up buying his apples.

Originally it was only 5 yuan, but you took 4 yuan to buy his apple. After he earned 4 yuan, he left, and you only had 1 yuan left. It’s not enough to buy my apple

At this point, it will appear: you don’t have money to buy my apples, you don’t buy my apples, and I don’t have money to buy your pears – my apples, your pears, can only wait until they rot.

Buying domestic products is actually the same as the above “I buy your pears, you buy my apples”, but the process is slightly more complicated: your money is earned by Zhang San, Zhang San buys Li Si’s products, Li Si buys Wang Wu’s products, Wang Wu buys Zhao Liu’s products, and Zhao Liu comes to buy your products

This is the first benefit of purchasing domestic goods – wealth always stays in the domestic circulation, promoting the development of various industries. On the contrary, if you purchase foreign goods, even if their cost-effectiveness is high, it is equivalent to letting wealth flow out, which is not conducive to the development of the domestic economy.

Suppose that two Chinese and American enterprises produce an identical commodity, and their price is 100 yuan each, and the tax rates for enterprises in both countries are the same: Chinese enterprises pay 30 yuan to the Chinese government, and American enterprises pay 30 yuan to the American government.

If you buy domestic goods, the tax will be taken away by the Chinese government. When the Chinese government has money, it will use the money to build schools, roads, bridges or develop military affairs. Eventually, the money will be used by all Chinese people. On the contrary, if you purchase foreign goods, you will no longer enjoy these benefits and may even become a bullet that kills you!

This is the second benefit of purchasing domestic goods – it increases the country’s tax revenue, which is “taken from the people and used for the people”. Ultimately, this money is still yours. On the contrary, if you purchase foreign goods, it is equivalent to paying taxes to other countries, which not only does not benefit you, but also poses serious harm!

In addition, purchasing domestically produced goods can also increase employment opportunities in the country.

Of course, the above is only about the benefits of supporting “replaceable” general goods. For some high-tech products, the significance of purchasing domestic products is even more significant because the profits of high-tech products are very high.

Everyone knows that in modern times, China fell behind – it was not until the founding of the People’s Republic of China that we had our own industrial system, but our industrial foundation was very weak and far from comparable to Western capitalist countries that had already entered industrial society 2-300 years ago.

You have been raising crabs for decades, accumulating a lot of technology, and the initial investment has already been recouped, so your crabs must be fattened and large, and the price is not that expensive.

At this point, if I also want to raise crabs, my cost will definitely be much higher than yours – due to insufficient understanding of crab diseases and inaccurate water quality requirements, the survival rate of the crabs I raise is relatively low; Due to imperfect feed pairing techniques, my crabs are not that big in size; Due to my recent involvement in this industry and lack of recognition, I need to do a lot of advertising and invest heavily

To fully understand these issues and perfectly match the entire system, it not only requires a lot of time, but also a lot of financial support – high-end manufacturing is tens of millions of times more complex than this, and any high-end manufacturing involves tens of thousands, even tens of thousands of patents. If you want to avoid being choked, you must conquer all the core technologies.

So, at this point, I must get everyone’s support – only when everyone comes to buy my “small and expensive” crabs, can I have enough money for more research and experimentation.

For some core industries, we could only adopt two methods before:

Firstly, imposing huge tariffs on foreign companies;

Only by imposing huge tariffs on foreign companies can foreign products be sold at sky high prices domestically. In the case where the quality of domestic products is inferior to that of the other party, only by seriously disrupting the cost-effectiveness of foreign products can domestic companies obtain sufficient profits, enable them to conduct various research, and promote technological development.

Secondly, the government provides substantial subsidies.

If the price of goods is too high, it is not conducive to expanding the market and the development of enterprises. Therefore, the country can only significantly reduce the price of goods through huge subsidies: when the price of goods is reduced, more people can buy them; More people purchase and use the product, and the speed of discovering problems will accelerate, which can further improve the product and promote technological progress

However, this approach is no longer feasible.

In the era of globalization, national policy support and financial subsidies are often caught by other countries. They will launch “anti-dumping investigations” against Chinese goods, impose huge tariffs, and even impose huge fines on relevant enterprises. Only countrymen’s spontaneous purchase of domestic goods can make other countries speechless – this is the main reason why leaders of many countries appeal to their own people to buy their own goods, rather than using policies to block the entry of other countries’ goods into their own countries (if you use policies to block the entry of other countries’ goods, other countries will also use policies to block your goods from entering their own countries).

So, at this point, companies need us ordinary people to spontaneously support them!

Many people envy the high welfare of European and American countries, but have you ever wondered where the high welfare of European and American countries comes from?

The answer is: European and American countries monopolize high-tech products.

Europe and America have monopolized high technology, so even if they sell us goods worth 1 yuan for 1000 yuan, we still have to buy them! And part of the wealth they exploited from Chinese people has been transformed into people’s welfare by the US government in the form of taxes – the US is relying on technology monopoly, so they can have “sweet” air to breathe, rich welfare to receive, and more than ten times our wages

Therefore, for us Chinese people, if we don’t want to breathe polluted air and do not want to do low profit middle and low-end manufacturing, we must break their monopoly.

We have a question: if the price of a foreign product is always 3000 yuan, and another identical Chinese product is priced at 4000 yuan. At this point, I’m telling you: if you purchase my product this year, you can buy the same product next year for only 3500 yuan, the year after next for only 3000 yuan, and the year after next for only 2500 yuan or 2000 yuan… How would you choose?

I believe that as long as you are not foolish, you will definitely choose to buy Chinese goods – because in the short term, your interests will be damaged, but in the long run, the benefits you will gain are enormous.

In fact, countless facts have proven this:

The single valve, which is monopolized by Germans and has a high unit price of more than 1.8 million yuan, has a service life of only one to three hours. After our independent research and development, the price is only one ninth of that of Germans, less than 200000 yuan, but the service life has been greatly extended.

Graphene, which is required for tires, bulletproof equipment, lubricants, etc., used to be a high-end material with an international market price of 5000 yuan per gram. In 2013, Ningbo built a production line with an annual production capacity of 3 million tons, reducing the cost price of graphene to 3 yuan per gram;

A board of switches in the communication industry, sold for 200000 yuan abroad 15 years ago, started production by domestic enterprises 10 years ago, and the price dropped to 10000 yuan 5 years later; The reducer used in the cement plant’s grinding machine was sold for 10 million yuan overseas at that time, but after localization, the price was only 3 million yuan;

In the integrated circuit industry, the 8086 chip required for computers had to be imported in the early 1980s, with almost zero cost. At that time, China could only buy it at high prices internationally. However, when a certain microelectronics company developed a 0.6um integrated circuit production process, the market price dropped to 5 yuan;

……

We can see that before the Chinese people could not do it, these things were extremely expensive. Once we could produce them, they became cabbage prices.

Do you dare to say that you didn’t profit from it?

Similarly, Huawei is like this: before we had our own high-end mobile phones, foreigners sold our mobile phones at high prices. However, after Huawei’s success, we can enjoy phones with better performance and cheaper prices than foreign countries.

So, supporting domestic production is actually equivalent to supporting yourself!

Many people do not understand these principles; Many people understand, but they crave small gains.

For those who don’t understand, we need to reason with them. I believe that once those who don’t understand these principles understand, many people will choose domestic products.

However, I also believe that many people will still buy foreign goods even after they understand these reasons – as we mentioned above, for an identical product, foreign goods have always sold for 3000 yuan. Chinese goods cost 4000 yuan in the first year, 3500 yuan in the second year, 3000 yuan in the third year, and only 2500 yuan in the fourth year. He will choose foreign goods in the first two years and Chinese goods in the fourth year.

Simply put, this type of person is extremely selfish. When making contributions, they don’t put in effort, but when enjoying benefits, they step out.

For such people and companies, when policies cannot find any good solutions for them, we must engage in “moral blackmail”, curse them, and use various means to force them

So, I hope everyone can support domestic production, because supporting domestic production is actually supporting yourself.