This time, Obama negotiated many conditions with Hua Xia. For example, Hua Xia agreed to buy 50 billion worth of US government bonds. However, he added a condition. When the bonds mature, they will be calculated according to the higher USD or RMB exchange rate. If the USD depreciates, Hua Xia can ask for the bonds to be calculated according to RMB. If the USD appreciates, they can be calculated according to USD.
This condition is quite harsh, but Obama still agreed to it. This is because no other country is willing to buy so many US government bonds.
Of course, the US also offered some technologies to remove the restrictions on Hua Xia. Speaking of this, you can see how shameless the US is.
The US approached countries in Europe and Asia who have these technologies. They said that they will block Hua Xia's technologies together and no one will give them access to them. This is to prevent Hua Xia from developing too fast and becoming a threat to the US.
When the US realized that these technologies can't stop Hua Xia for a few years, they immediately took them out and traded with Hua Xia privately in exchange for some benefits.
The other countries that are also blocking Hua Xia's technologies probably don't know about this. When Hua Xia suddenly announces that he has mastered this technology, those countries are stunned.
Of course, the US did not give many of the technologies that Hua Xia proposed. This is because those technologies are more than three to five years ahead of Hua Xia, and they are worth more.
They have already paid a price and can't give up too much.
Actually, many countries that are working with Hua Xia realized that Hua Xia is not as easy to fool as before. Hua Xia is even smarter than them now.
In the past, as long as a country takes out a technology that is better than Hua Xia's, Hua Xia will do whatever it takes to get it. But Hua Xia doesn't know that they have already developed a better replacement technology. In other words, this technology is obsolete.
Obsolete technologies can still be exchanged for so many benefits. This is because Hua Xia doesn't have enough information. It's also because Hua Xia's technologies were too weak at that time and they were in a hurry to develop.
But now, Hua Xia places great importance on collecting information. Then, he has a large team to analyze the issues that might arise in the negotiations from all angles and find a balance.
Also, Hua Xia did not need many technologies now. Moreover, most of them were high-end technologies. They would not be able to develop replacement technologies so quickly.
What's more, if he cheated them once or twice, he wouldn't be able to work with them anymore. Losing a partner like Hua Xia was very serious for many countries.
Hua Xia also requested for the US to open up some markets and reduce taxes on certain industries to ensure that Hua Xia's products would be competitive. Of course, Hua Xia would also import some US products to promote bilateral trade.
For example, Hua Xia wanted to import machinery, food, automobiles, electronics, and chemical products from the United States, while the United States wanted to import automobiles, textiles, food, electronics, chemicals, and steel from Hua Xia.
The United States might be technologically advanced, but it was also a major exporter of agricultural products. In particular, they were good at growing genetically modified crops. Then, instead of being eaten by their own people, they would sell them to foreign countries.
This time, Hua Xia had made it very clear that Hua Xia would no longer import genetically modified crops and related seeds. We, Hua Xia, do not care about the low production of non-GMO products, unless you promise to take back our genetically modified food.
How can the US do that? We had always been importing low-value-added products and exporting high-value-added products. This time, Hua Xia wants to do the opposite. We will export crops, and you will process them into food and sell them back to the US. This will not work.
Hua Xia's idea is to use genetically modified corn to produce ethanol and gasoline, and the residue can be processed into animal feed and sold to the US. This is not for humans, but pigs fed with genetically modified corn residue must be served on the dining table.
Anyway, Hua Xia does not want any danger. As for genetically modified soybeans and wheat, they can forget about selling them to Hua Xia.
Initially, the US wanted to import raw materials like iron ores for them to make steel. But Hua Xia is not selling them now. We produce our own steel, and selling steel is more profitable than selling ores. Furthermore, we also need to import ores.
That Polar Bear Mining Group is not a state-owned enterprise, and we have no right to decide.
You are talking about those rare minerals? Sorry, we are not short of money now and will not sell these minerals. If you need any special steel, you can buy from Hua Xia. If you buy more, you can get a discount.
The US has a huge shortage of textiles. They want to import some raw materials and process them into finished products. They can then use their brand to earn high profits.
But Hua Xia said that they do not need to import textiles. Our country still exports our own products. We do not export raw materials much now because we do not have enough finished products to sell.
If it wasn't for the European Union's anti-trust investigation, which affected Hua Xia's sales in Europe, there will be no need to negotiate with the US. They can sell their products in Europe.
Now, the anti-trust laws are not saying that you cannot dump your products below the cost price. It is saying that you cannot sell your products below the cost price in China. This is to prevent you from squeezing our market with your low labor costs.
The US still wants to turn Hua Xia into an OEM factory. They want to make use of Hua Xia's low labor costs and let Hua Xia produce their products. The more they produce, the more profits they can make, and they can even sell their products in Hua Xia.
But this time, Zhang Ruiqiang rejected. Hua Xia's companies had gone to India and Brazil to set up factories. This is because the labor costs there are lower, and Hua Xia's labor costs had increased.
Hua Xia also does not want to be an international factory. They want to be a designer and not just a producer.
Actually, Hua Xia's labor costs did not increase very fast. Hua Xia still has an advantage in the international market, especially compared to Europe and the US. But there are cheaper factories in Brazil and India. Why should they let their people go through this difficult path?
This is what Feng Yu told Zhang Ruiqiang. Feng Yu used his company as an example and analyzed the disadvantages of using labor costs to compete. Once Hua Xia becomes an international factory, how will their technologies improve? Think about Thailand in the past. Once labor costs increase, the economy will collapse.
Feng Yu will not do low-value businesses if he can. At the same time, the US needs money. Obama had just taken over, and he needs political achievements to ensure his popularity. That's why he can make some demands.
If China and the US stop trading, both sides will suffer heavy losses. But China can bear the losses. Our economy will slow down, but the US economy will definitely decline. Both sides cannot afford to do this.
Finally, Zhang Ruiqiang brought up an important issue in the trade between the two parties. The US did not have a large port, so it was impossible to stop large cargo ships. This seriously affected the efficiency and cost of the trade between the two parties.
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