We all know that the best way to develop backward industries in our country is to reduce their market competitiveness by increasing tariffs on imported goods. This will achieve the purpose of protecting and supporting the development of relevant industries in the country.

Author: Inspector Zhongguo

We all know that the best way to develop backward industries in our country is tariff barrier , which reduces its market competitiveness by increasing tariffs on imported goods. This will achieve the purpose of protecting and supporting the development of relevant industries in the country.

Take my country's automobile industry as an example:

Before 1985, the import tariff rate of my country's complete vehicles was 120%~150%, and then an 80% import adjustment tax was levied on the original basis.

Since 1986, my country has combined tariffs and import adjustment taxes. The import tariff rate for gasoline cars with displacement of more than 3.0 liters is 220%, and the tax rate for displacement of less than 3.0 liters is 180%. This tax rate has been used for 8 years. During this period, the price of imported cars in my country was 3 to 4 times higher than that in the international market.

We only started to lower the tariff on imported cars for the first time since 1994, but the reduction is not large. It was not until 2002 that my country's automobile import tariffs gradually decreased significantly. The import tariffs of automobiles above 3 liters and below 3 liters were uniformly reduced from 50.7% and 43.8% to 25% in 2006, which was basically in line with the international market, but it was still relatively high.

China is a developing country in , and is not yet a powerful automobile country. Faced with many world automobile giants, appropriate tariffs and policy protection will help my country's automobile industry develop healthily and catch up with the world's level. It is precisely because of the protection of imported automobile tariffs that the domestic automobile industry has survived and gradually grown.

In fact, as an industry leader, the best way to occupy the market is to dump at a low price, suppress later competitors, and prevent them from developing. Later, we had to start research and development and manufacturing from scratch, with backward technology, high costs and no competitive advantage. In the market, users will definitely choose high-quality and low-priced products.

The US chip industry has long been familiar with this trick. Historically, they have imposed a chip embargo on my country. We are forced to spend a lot of manpower, material resources and financial resources to carry out technical research. When a breakthrough is about to be made, it is often impacted by the low-priced dumping of American chips. Especially in the civil market, high-priced and immature products cannot withstand this impact at all. Years of hard work have been put into the market overnight.

Therefore, if many countries want to develop backward local industries, they generally build tariff barriers to the outside world, increase the cost of imported products through high tariffs, and weaken their competitiveness. Practice internal skills hard, develop and strengthen yourself, and then go overseas to participate in international competition.

my country has officially joined World Trade Organization . The above practices obviously violate the principle of free trade. Now the United States has taken the initiative to close the door to the Chinese market, which is equivalent to actively establishing a barrier. This practice has helped the Chinese chip industry in disguise. Although the domestic chips are poor in performance, unstable, high in price, and long supply cycle. But now we have to choose to use our own chips. With the guarantee of the market and continuous investment, after several rounds of iterations, the entire industrial chain will develop. I believe that in a few years, we will definitely have our own Intel, TI, Xilinx.

The annual market quota of China's chip industry exceeds one trillion yuan and is still developing rapidly. Now it seems that the US ban on China's chips is definitely a good thing and a golden opportunity for China's chip development!