Sky-High! 3500% Tariff Targeting Chinese Companies

Today’s Focus: Skyrocketing 3500% Tariffs are Here! JD.com Battles Meituan, Online Battle Heats Up! “Rat People” across China Lament! America Delivers Heavy Blows to Cambodia, Vietnam, Thailand, Malaysia, Four Nations Face Severe Disaster.

Hello everyone, welcome to “News Discussion”. I am Jinshi, and I am Fuyao. Today is April 23, Wednesday.

Our guests for this episode are: Professor Zeng Jianyuan, Chairman of the Chinese Democratic Academy; Qin Peng, Current Affairs Commentator and Senior Political Economist.

Jinshi: Just as the CCP leader Xi Jinping recently visited three Southeast Asian countries with the intention of rallying them to stand against the US, on the American front, they have started firing at the four Southeast Asian countries.

On April 21, the US Department of Commerce announced preliminary determination of “anti-dumping” and “anti-subsidy” tariffs on solar products.

According to the Department of Commerce, the US will impose a 41.56% tariff on solar products from Malaysia, a 375.19% tariff on products from Thailand, and a 120% tariff on companies in Vietnam.

Due to the lack of cooperation from Cambodian manufacturers in the US investigation, products from Cambodia will face tariffs exceeding 3,500%. The US International Trade Commission will make the final decision on the new tariffs in June.

Fuyao: According to US government data, in 2024, the US imported $12.9 billion worth of solar products from Malaysia, Vietnam, Thailand, and Cambodia, with over 90% of these products coming from Chinese-owned companies.

The US Department of Commerce stated that Chinese manufacturers circumvented existing trade restrictions by shipping components to Southeast Asia for final assembly, in order to avoid tariffs on Chinese domestic solar products, a practice believed to harm US manufacturers.

Jinshi: However, this round of tariffs is not a new action by the Trump administration but based on anti-dumping and anti-subsidy investigations that began during the Biden administration.

The new tariff policy is expected to be formally implemented starting in June.

Zeng Jianyuan: In recent years, the US government has cracked down on “origin laundering”. But for Cambodia, the US imposing a 3,500% tariff is unheard of. Why do you think the US is imposing such a “sky-high tariff” number?

Qin Peng: According to the “Inflation Reduction Act” introduced by the Biden administration, in states like California and Massachusetts, where solar power accounts for over 15% of total electricity generation, the US government hopes to significantly reduce cheap solar products from China for trade balance. But will this lead to higher electricity costs for states using clean energy?

Zeng Jianyuan: Vietnam, known for its “bamboo diplomacy,” has expressed reluctance to worsen relations with the CCP due to US tariff policies. Negotiations with the US for Vietnam do not involve trade restrictions on third countries. However, with the current situation, the local solar industry in Vietnam has seen reduced production and layoffs due to tariffs, with some Chinese companies starting to withdraw from Vietnam.

In the midst of the recent visit by the CCP leader to Southeast Asian countries and US pressure, can “bamboo diplomacy” still support the foreign policy of Southeast Asian countries like Vietnam under current circumstances? How do you predict the future of Sino-Cambodian relations?

Fuyao: Just as China and the US engage in a tariff war, the food delivery industry in China is also witnessing a rare major battle: JD.com is battling Meituan.

In recent years, with changes in consumption patterns, especially among young people, the food delivery market in China has been growing rapidly, leading to increased competition.

The food delivery market in China has been dominated by Meituan and “Ele.me,” with Meituan holding nearly 70% market share. However, the Chinese e-commerce giant JD.com entered the food delivery market forcibly in February this year, adopting various differentiated strategies and engaging in multiple clashes with Meituan, sparking a new round of intense competition in the food delivery industry.

Jinshi: The “instant retail” market is currently the focal point of fierce competition between platforms like Meituan and JD.com. On April 15, Meituan officially launched its instant retail brand “Meituan Flash Purchase,” with the slogan of “Delivery in 30 minutes for everything.”

On the 21st, tensions escalated as JD.com announced that all orders delayed by more than 20 minutes would be canceled.

JD.com also released an “Open Letter to All Food Delivery Riders,” without explicitly naming Meituan, criticizing forced choices between Meituan and JD.com resulting in reduced income for delivery riders and delayed JD.com orders. The letter indirectly accused Meituan of exploiting its monopolistic position to profit without providing benefits to delivery riders.

Fuyao: JD.com also introduced new measures, including ensuring sufficient orders for delivery riders barred from other platforms, encouraging part-time delivery riders to take orders freely. JD.com also announced plans to hire an additional 100,000 full-time delivery riders over the next three months. Interestingly, JD.com stated it would prioritize providing employment opportunities to the spouses of its delivery riders.

Meituan responded by denying claims of restricting delivery riders from operating on different platforms and instead accused JD.com of strict management leading to loss of delivery riders and merchants, resulting in delayed orders.

Jinshi: In the evening, Meituan released an article quoting a line from Jin Yong’s novel, “The Heaven Sword and Dragon Saber”: “He who is strong is powerful, the wind brushes the mountains. He who is imperious is imposing, the bright moon shines over the great river.” Below, Meituan quoted the words of Venerable Hongyi, saying, “If one is slandered, one must not defend oneself. I have often seen people being slandered, but when they explain and defend themselves, they often suffer losses.”

It seems that Meituan has elevated its stance to a Buddhist level, with the phrase “He who is strong is powerful” clearly alluding to JD.com’s CEO Liu Qiangdong.

Fuyao: Liu Qiangdong didn’t stay idle either. He was spotted on Monday dressed in a delivery rider’s uniform, personally delivering food orders to support JD.com’s food delivery business. Netizens praised his actions as truly “daring.”

The battle between the two giants has led to a mutual loss in the market. Both companies are listed on the Hong Kong stock exchange, with JD.com’s stock falling by 8.1% and Meituan’s by 7.1% on Tuesday, reaching their lowest levels in about seven months. Both stocks were among the worst-performing in the Hang Seng Tech Index.

Jinshi: It is worth noting that this public battle between the two food delivery giants is taking place against the backdrop of the escalating China-US tariff war.

While the CCP authorities counter the US, claiming to strengthen the domestic market and expand domestic demand as a long-term strategy, they have recently urged retail businesses to convert exports to domestic sales. However, with China’s economy in decline over the past two years, consumer downgrading and sluggish domestic demand are well-known facts.

Due to the economic downturn in China, more and more middle-class individuals have turned to food delivery as additional income. The number of food delivery workers in Beijing surged by a staggering 50% in the first half of last year. The tariff war has led to numerous Chinese factories shutting down, with estimates suggesting a further increase in the unemployed population.

Qin Peng: Looking at the food delivery battle between JD.com and Meituan from an industry analysis perspective, what do you think is the reason? Moreover, in the larger context, is there a direct relationship between this internal battle in the food delivery industry and the China-US tariff war?

Fuyao: The term “upheaval” has become a very high-frequency word in mainland China. According to official CCP data in 2022, foreign trade supported 180 million employment opportunities. According to the 2023 data, China’s exports account for nearly 20% of its GDP. Guangdong, Zhejiang, Jiangsu, and Shandong are recognized as the four major exporting provinces in China.

Zeng Jianyuan: If China were to decouple from the US in trade, it would undoubtedly face a large wave of unemployment. Can the JD.com and Meituan battle be seen as a prelude to intensified internal competition and cruelty in various industries in China?

Jinshi: Recently, another term trending on the mainland’s internet is “Rat People.”

What are “Rat People”? “Rat People” flip day and night, engaging only in essential activities like eating, using the bathroom, sleeping, playing on their phones, procrastinating other tasks, without much desire or purpose.

Fuyao: This state filled with low energy, procrastination, and slight sloppiness has resonated with countless netizens, overshadowing so-called refined lifestyle vlogs, with netizens collectively embracing the term “Rat People.”

So far, topics related to “low energy” have garnered billions of views online, temporarily topping the Hot Search list on Xiaohongshu; topics related to “Rat People” have accumulated nearly 2 billion views, with “Rat People” becoming the emerging trend in 2025.

Qin Peng: How do you view the phenomenon of young people willingly embracing the identity of “Rat People”?

Zeng Jianyuan: Taiwan and mainland China are very different societies. What is the current situation of young people in Taiwan? In your opinion, what different challenges do young people in Taiwan and mainland China face?