Foreign media pay attention! The Secret of American Enterprises Obtaining High Profits in China

　　CCTV News:On July 20th, CCTV’s "International Sharp Review" broadcast an article entitled "The Secret of American Enterprises Obtaining High Profits in China", which was reprinted by many overseas media.

　　On July 20-21, facebook account of French Radio LCF, German website of European Times, German-Chinese Report website, Russian Siberian News website, Spanish Radio International website, Turkish Economic Observer website, Kazakh newspaper official website, Nordic Times website, American Business Daily website, European Union Chinese website, African Times website, Canadian Business Daily website, Hungarian United Daily website, Chinese PT portal. On July 21st, Hong Kong Ta Kung Pao and Wen Wei Po also published this article. The main reports are as follows:

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　　The Section 301 Committee of the United States will hold a hearing from August 20th to 23rd to discuss the list of US government’s proposal on July 10th to impose a 10% tariff on China’s $200 billion goods exported to the United States. The Trump administration said that the United States did this because of China’s improper behavior and unfair trade practices, including government subsidies, which brought huge losses to the United States. Is this the truth?

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　　First of all, thanks to China’s fast-growing economy and huge consumer market, many American companies are very successful in the China market.

　　The world’s second largest manufacturer of connectors and cable components, Amphenol Group of the United States, just entered the China market, relying on mergers and acquisitions to develop rapidly. In 2007, Amphenol finally became the dominant company through two barriers: patents and standards, and earned high profits from relevant markets in China every year. At present, Amphenol controls 80% of the high-speed connector market in China communication equipment and server industry.

　　In fact, Ann Fanor is not the only American company that has achieved great success in the China market. According to statistics, the market share of glass substrates of American Corning Company in China is over 50%, and China’s 10th and 5th generation glass substrates are all monopolized by Corning Company. As for Apple and General Motors, China has become not only their production base, but also the largest consumer market for their products.

　　Secondly, in order to encourage foreign enterprises to invest or develop certain priority industries, local governments in China often give a lot of preferential policies and financial support to joint ventures, which not only provides an important boost to the development of American companies, but also becomes a source of high profits.

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　　After China joined the WTO, a large number of American companies made huge profits from China. For example, in 2017, the two joint ventures of General Motors in China realized a total profit of 27.99 billion yuan, from which General Motors took a profit of 13.33 billion yuan.

　　As the world’s largest IC consumer market, nearly half of the world’s IC products are sold to China. Last year, the revenue of 20 major integrated circuit companies in the United States in China exceeded $75 billion, accounting for about 35% of the total revenue of these 20 companies.

　　Washington launched a trade war against China under the banner of protecting American interests. It is hard to understand that such unilateral measures will benefit these American companies in China, which have already made huge profits? The common sense of the international community has always been that a trade war brings a double loss, not a win-win situation.

　　A number of overseas media forwarded the article:

The German-Chinese Report website was forwarded on July 20, 2018.