Summary of the Key Points
This article discusses the Trump administration's sanctions against Chinese companies, mocking the absurdity of the United States' excuses while analyzing the real motivations behind these sanctions. It also offers advice on strategic development for Chinese businesses. The U.S. has targeted Chinese food companies (such as Qiaqia and Siniàn) and optical module manufacturers, citing excuses like “forced labor” and “national security,” which are clearly flawed. The actual reason is that these companies pose a moderate threat but can still be replaced by other alternatives. Being sanctioned can be seen as a form of “growth certification”; once companies overcome this challenge, they have the potential to become industry leaders. Chinese businesses need to break free from the mindset of being mere substitutes and pursue innovation to achieve true success.
1. The Absurdity of U.S. Sanctions
The accusations made by the U.S. against Chinese companies are simply ridiculous. For example, Qiaqia Food was sanctioned on the grounds that it might use melon seeds from Xinjiang—when no one knew this about the company, the U.S. essentially got free advertising for its products, leading netizens to joke that they should buy more of Qiaqia’s products. The claim of “forced labor” in Xinjiang is even more absurd, as cotton harvesting there has long been automated, making it much cheaper than using manual labor. It’s like refusing a delicious meal and choosing to eat something completely inedible.
The sanctions against optical module manufacturers are even more far-fetched, with the excuse being that these devices pose a threat to national security. The Americans themselves admit they know more about backdoors than anyone else, yet they act as if they’re confused. In reality, the U.S. is a master of using forced labor—historically, its southern plantations relied on black slaves for cotton cultivation. Now it accuses Xinjiang of the same practice, which is a clear case of judging others by one’s own standards and is nothing but a mockery.
2. The Real Motivation Behind Sanctions
Many believe that being sanctioned means a company is too powerful, but the opposite is true: it indicates that the company is not strong enough yet poses a certain threat, which allows the U.S. to take action because it can find alternatives. For instance, with optical modules, the American companies InterXiong and Lumentum have significant market shares, so the U.S. dares to ban Chinese manufacturers like Zhongji Xuchuang. However, with rare earths (for which there are no viable substitutes) and Tesla’s reliance on CATL batteries, the U.S. is more cautious about imposing sanctions.
This is similar to a school bully who only targets students they can easily defeat; when faced with a stronger opponent, they back down. The U.S. applies double standards: it sanctions companies that can be replaced and pretends not to see those that are indispensable.
3. Being Sanctioned as a Sign of Growth
Being sanctioned by the U.S. is actually a sign that your products have reached a level of quality that makes them a concern for the market, but not yet so crucial that they cannot be replaced. This is similar to the concept of the “Five Greats” in Jin Yong’s novels—only those who defeat (or tie with) Ouyang Feng become the ultimate champions. Just as a character like Ke Zhen’e may be formidable but often loses battles, a company that survives sanctions can emerge as a leader in its industry.
4. Breaking Free from the Mindset of Being a Substitute
Many Chinese companies currently see themselves as substitutes for Apple or Tesla, which is a problematic approach. Being a substitute means following in someone else’s footsteps, leading to a ceiling in your development: if the original brand reduces prices, you lose your competitive advantage; if you grow too large, you become a target for sanctions. Moreover, there are always cheaper competitors emerging, putting you in a difficult position.
To succeed, companies must move away from this mindset and focus on innovation to create products that are truly unique and irreplaceable.
5. Creative Ways to Overcome Sanctions
Companies have ways to circumvent sanctions. For example, if optical modules are banned in the U.S., they can supply them to Mexico or Canada, which have close trade ties with the U.S. As Hayek said, “Life will find a way.” Companies can also change their brand names to avoid the restrictions. As long as their products are of high quality, U.S. bans cannot stop their success.
This article humorously explains the underlying logic of sanctions and provides a clear path for Chinese businesses: avoid being substitutes, don’t fear sanctions, and use them as an opportunity to grow and become industry leaders.