Chapter 2428: Official action taken, the Li family’s world is falling!

The official website of the Taxation Bureau directly posted an announcement claiming that according to Article 213 of the Daxia Foreign Trade Tax Act, Daxia will impose a 100% tariff on all high-tech products under the name of Sansang.

The announcement was very concise and to the point, consisting of just this one sentence.

But in the business world it is like dropping a bombshell!

Prior to this, the electronic product that Daxia levied the most severe tax on was Pingguo mobile phones, and the added tariff was only 10%.

What does a 100% tax rate mean?

For example, the original price of a certain mobile phone in China is 5000 yuan, but after the imposition of tariffs, the selling price becomes 10000 yuan!

In this case, it is sold for 5000 in other countries, but for 10000 in Daxia. How is it possible that anyone would still buy it?

Therefore, adding tariffs is the best way to sanction a company or a product.

What the hegemonic country is best at is to unite various Western countries, as well as the Sakura Country and the Yin-Yang Country to impose tariff sanctions on a certain product or company, thereby building a tariff barrier so that a certain product can never be exported and can only be sold in the country.

Which products are most severely affected by tariffs?

Xia Wei mobile phone?

Kirin chip?

no~~~no~~~no~~~

neither!

As far as Chen Mo remembered, the one that suffered the most severe tariff sanctions from the hegemonic country in the previous life was Da Xia Xiang Sanbengzi!

When the domestic legendary three-wheeled vehicle was sanctioned by the hegemonic country, I never thought that I would be able to eat at the same table with Xia Wei in my life.

Sanbengzi is actually an electric tricycle. In China, a fully equipped one costs only about 5,000 yuan, and a high-quality and brand-name one costs no more than 20,000 or 30,000 yuan.

But if exported abroad, the minimum starting price is 7!

Such a high price can buy an entry-level bicycle, but it still can't stop it from becoming popular overseas.

Especially the "rednecks" in the large rural areas in the central and southern parts of the country are all vying for it.

First, let’s learn about what rednecks are.

This name originated during the Civil War in the hegemonic country. At that time, poor farmers in the South had their necks sunburned red due to working for a long time under the scorching sun, so the Northerners used it as an offensive name for Southerners.

In modern times, the term "redneck" has evolved into a general term for the lower-class white people in the southern hegemony. The common characteristics of this type of people are that they live in rural areas and on farms. They are generally poorly educated, poor and backward, like to drive pickup trucks, wear jeans and flip-flops, wear felt hats, eat big steaks, always have wine with them, like to play with guns, and often participate in hunting activities.

What rednecks like most is big pickup trucks, preferably with large displacement and the kind that rumbles and emits smoke.

Except for being a little slower and having less power, the three-wheeled motorcycle meets all the needs of rednecks in other aspects. Most importantly, it is very useful for hauling goods and is even more convenient than a pickup truck.

Therefore, whoever has a three-wheeled motorcycle can become the most beautiful red-necked person in the village and receive countless envious glances.

Even the voice of the three-wheeled motorcycle, "Be careful when reversing! Be careful when reversing!", has become the most mysterious oriental spell in their eyes. Once it is released on the street, it will definitely attract onlookers.

How popular were three-wheeled motorcycles in the last life?

At a time when global trade is sluggish and economic growth rates in Western developed countries generally do not exceed 2%, Daxia's three-wheeled motorcycles have not only achieved reverse export growth, but even its supporting peripheral products have become hot commodities.

Rednecks who were afraid of the cold bought windshields, while those who were afraid of the sun rushed to buy awnings.

The domestic price of these accessories is only about 100 yuan, and the price abroad is also about 100 yuan, but the unit is changed to the currency of the dominant country.

A set of windshields can be sold for almost the price of a second-hand three-wheeled motorcycle, which is really scary.

As a result, the three-wheeled vehicle enterprises and logistics companies that had never thought of doing business with foreigners began to take action and sell three-wheeled vehicles to foreigners directly through international logistics.

The postage cost of a three-wheeled motorcycle may be higher than its selling price. Even so, the rednecks in the hegemonic country still enjoy buying it.

When the colleagues from the hegemonic country saw this, they wondered how could this be possible.

Our pickup truck costs 3 Thai Baht, and your three-wheeled motorcycle costs only a few dollars?

Is this going to keep us alive?

As a result, competitors of Baguo reported the matter to Baguo's Business Department.

As a result, the Commerce Department of this hegemonic country was actually alarmed!

The Ministry of Commerce directly announced the launch of anti-dumping investigations and sanctions against three-wheeled vehicles, with the reason being: it threatens the industrial security of the hegemonic country.

When Chen Mo saw this reason back then, he was stunned.

What?

Does the three-wheeled vehicle threaten the industrial security of the hegemonic country?

It's so outrageous that my own mother had to open the door - it's outrageous!

As a result, three-wheeled vehicles were included in the sanctions list of the hegemonic country along with high-tech products such as Xiawei, new energy electric vehicles, 5G technology and chips.

In order to make the sanctions sound more legitimate, the officials of the hegemonic country gave the three-wheeled vehicle a very high-sounding name called "low-speed manned vehicle".

What’s even more outrageous is that the Personal Transportation Manufacturers Alliance of the Hegemony also said in the petition: The price of a certain large Eastern country’s cheap passenger vehicles is really unreasonable. They have official subsidies and specialize in vicious price wars. Therefore, once they enter the Western market, they immediately open up the situation, with a dumping rate of up to 477%!!! As a result, no one buys our cars!!!

So how unreasonable is the selling price?

At first, the price of a three-wheeled motorcycle was 3000 Baguo coins, which is more than 2 yuan.

Not only does it have a long battery life, it can travel 60 kilometers on a single charge, and it can even carry people and climb hills without any problem. It also has no exhaust gas, so it is very environmentally friendly.

The peasants of the hegemonic country, who were used to being exploited, had never seen such good things before, so they all thought it was too cheap.

When I took a look at Daxia’s export companies, I was shocked. There are actually people willing to be taken advantage of!

There was no choice but to comply with public demand and raise the price with tears in my eyes, selling it at 5000-12000 Ba Guo currency.

I didn't expect that even at this price, the Ba countrymen would still be defeated.

Because the companies in the hegemonic country previously produced similar products and advertised that the cost alone would be more than 40000 hegemonic currency, but you, the great Eastern country, only sell it for 1?

What do you think the consumers in the hegemonic country will think?

Does it mean that you have a conscience, or that we have lost our conscience?

Sure enough, consumers rushed to the manufacturer to ask for explanations or even to return the products.

But manufacturers are all capitalists, so they definitely can’t give any explanation.

So the Personal Transportation Manufacturers Alliance frantically blamed Daxia's manufacturers: "The manufacturing cost of such a car cannot be less than 4 Baguo coins, but Daxia's manufacturers only sell it for 1 Baguo coins. What does this mean? They are losing money to gain publicity and trying to monopolize the market with low prices. This is dumping! There must be a conspiracy behind this. It must be that Daxia officials are subsidizing them to kill our industry! They have a very bad conscience!"

They also listed a lot of data.

Most of Daxia's low-speed manned vehicles are exported to the Baguo and Oumeng regions, accounting for more than 95% of the total, and are widely used on large farms and plains.

If it is allowed to develop further, the low-speed vehicle industry of the hegemonic countries and the West will be finished!

As a result, the hegemonic country's officials imposed anti-dumping sanctions, increasing tariffs and raising the tax rate to 100%.

I originally thought that this would at least be able to curb the development trend of three-wheeled vehicles.

But what I didn't expect was...

Increasing tariffs will have almost no impact on the original market for three-wheeled vehicles!

Because the smart Daxia companies looked for foreign partners, did OEM and re-labeling, and then sold the products to the hegemonic countries.

This thing is not a mobile phone. No one will buy it if the brand is changed.

The three-wheeled motorcycle is a product with little technical content. Even if Daxia exports related parts to Baguo, they can be easily assembled into finished products in Baguo. Some with simple structures can even be done by hand. As long as Baguo has demand, Daxia's three-wheeled motorcycle can be purchased at any time.

Therefore, the sanctions imposed by the hegemonic country will only increase the burden on the consumers of the hegemonic country and damage their interests. For the related enterprises of the hegemonic country, they will not get better development because of the sanctions on Daxia's three-wheeled vehicles. This is a typical case of harming others without benefiting oneself.

But even so, the hegemonic country still wants to try to do it, which is enough to show how much concern they have about Daxia products. Daxia manufacturing has become an existence that the hegemonic country cannot surpass in more and more fields, while the hegemonic country's manufacturing industry is no longer able to restore its former glory. As one thing grows and the other declines, it is difficult for the hegemonic country to look at the global market rationally.

If nothing unexpected happens, the "Please pay attention when reversing" reminder sound will not only not disappear in the hegemonic country, but will likely become more and more common, because consumers will ultimately vote with the money in their hands.

Three-wheeled motorcycles are not affected much, but mobile phones and digital products are different.

This thing is too replaceable.

Especially since the Sansang mobile phone had an incident, many consumers no longer wanted to buy it. If the price were to double again, even die-hard fans would probably have to switch brands.

It is obvious that the action of the Daxia Taxation Bureau is to drive Sansang out of Daxia directly and prevent it from making a penny from the Daxia people!

Li Jianxi received the news while he was still on the private plane.

At that time, he felt like the sky was falling!