Welcome to the March 7th episode of “News Insight,” where we decode the news. Today’s guest is senior political and economic commentator Wu Jialong, hosted by Zhang Dongxu.
Today’s Focus: TSMC significantly widens the gap with its competitors! Investing in the U.S. to improve its competitive position! Will Trump spare no effort to protect it? Anticipating Chinese demand, Trump establishes a “cryptocurrency strategic reserve”! The CCP fundamentally fails to recognize that the key issue in the tariff war lies in trade imbalance!
As the CCP convenes its two sessions, the Ministry of Foreign Affairs is defiant, willing to go all out in any form of warfare, including tariff wars and trade wars. The U.S. Defense Secretary said they are ready. The CCP’s wolf warrior tone shifts to retreat, indicating they cannot afford to fight.
Bipartisan cooperation in the U.S. accelerates the counterattack in the covert war against China, expanding to counter CCP cognitive warfare, suing CCP hackers, arresting CCP agents. Trump imposes a second wave of tariffs, technology war, financial war, currency war, maritime war, and establishes a cryptocurrency strategic reserve. TSMC’s investment in the U.S., what does it signify for the tech war between Taiwan, freedom, and authoritarian camps?
Starting on the 4th, the CCP held its two sessions, while on March 4th, Trump’s Congress speech garnered high approval ratings, emphasizing reviving American manufacturing. On that day, citing China’s fentanyl exports, Trump announced a second wave of 10% tariff increase, and imposed a 25% tariff on Canadian and Mexican goods sold to the U.S. However, the White House later announced a one-month delay in implementing tariffs on cars and other items levied on Canada and Mexico.
In other words, those hit by tariffs in two consecutive waves are predominantly China. Equivalent tariffs will be implemented on April 2nd. In retaliation, starting from March 10th, the CCP will impose a 10% to 15% tariff increase on 740 agricultural products like soybeans and corn.
Questions for Wu Jialong:
1. How do you view the current U.S.-China tariff war? Didn’t the former head of the PBOC advise against retaliation by China?
2. Despite strong doubts about last year’s inflated economic growth target of 5%, Premier Li Keqiang mentioned “accelerated changes of a century,” focus on domestic consumption, technological innovation, and reiterated “consumption” 31 times in his speech at the NPC. Can they withstand the trade war?
3. The CCP refuses to fulfill its reform commitments to join the WTO.
The West accuses the CCP of true trade protectionism. Mexico and Canada are considering following the U.S. lead in imposing tariffs on Chinese goods. U.S. Treasury Secretary Mnuchin believes a “North American fortress” can be formed, and this trend will continue to spread, creating a sort of encirclement, a “tariff Great Wall.”
TSMC was invited to the White House where Trump announced a $100 billion expanded investment in the U.S.
Question for Wu Jialong: What are the pros and cons of TSMC’s move?
On Friday, March 7th (Saturday in Taipei), the White House will host a cryptocurrency summit. On March 2nd, Trump declared the establishment of a cryptocurrency strategic reserve, designating five cryptocurrencies. More policy details will be announced at the summit.
Common strategic reserves include oil, food, gold reserves, foreign exchange reserves, strategic metals and rare earths, medical and epidemic prevention materials; cryptocurrencies are highly volatile and speculative, seen as lacking the three main functions of currency: medium of exchange, unit of account, and store of value.
Question for Wu Jialong: Why then does Trump want to use cryptocurrencies as a strategic reserve?
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