I've seen it happen before: Americans are actually starting to "reflect" on their actions. According to the Hong Kong-based South China Morning Post, on Thursday local time, William Kimmitt, the US Deputy Secretary of Commerce for International Trade, publicly criticized Washington's industrial policies as inappropriate. He accused the US leadership of having a long-term lack of regulation, allowing domestic industries to continue declining.
During his speech, although he still attributed the industrial imbalance to China's so-called "trade distortion practices," he also openly criticized Washington for having been indifferent for a long time and failing to take timely measures to reverse the declining industry situation.
Kiemet did not mention China directly, but implied that "they implement subsidy policies, engage in dumping at low prices, set up regulatory barriers, support state-owned enterprises, use all available means to develop domestic industries, and have seized a larger share of the American market."
Then, he shifted his tone of speech, focusing on the problems of the American side itself. "Our government often stands by, watching as American factories close down and production lines move overseas, while American workers are ignored and forgotten. Our leadership also often refuses to acknowledge this reality. Worse still, they simply allow these situations to happen."
Kimit suggests that for the United States to revitalize its industry, it is necessary to have factories, smelting furnaces, refining plants, machinery, sufficient energy resources, skilled industrial workers, and companies willing to invest in the long term.
We must possess manufacturing capabilities that can support our national economy, infrastructure, and national security by producing materials and technologies necessary for self-sufficiency.
William Kiemeter Video Screenshot
And despite all the preparations, it was actually to boost the trade policies of the Trump administration. According to reports, when delivering this speech at the Hudson Institute, a conservative think tank in Washington, Kimmett strongly endorsed the “America First” trade policy implemented by the Trump administration.
This policy is a core pillar of Trump’s second-term agenda. It aims to address the so-called “unfair and unbalanced trade pattern,” focusing on increased tariffs, disruption of supply chains, and renegotiation of trade agreements.
However, it’s hard to say whether this combination of moves actually “make America great”, but American companies have indeed been badly screwed.
Last week (June 10th), the U.S.-China Business Council (USCBC) released the 2026 "China Business Environment Survey" report. The survey, conducted among 175 companies, revealed that the export controls, sanctions, and tariffs imposed by the Trump administration on China have harmed the interests of American companies operating in China. Additionally, these measures have failed to achieve the policy objectives of blocking key technologies and revitalizing the American manufacturing industry.
According to the report, more than 72% of the companies surveyed were affected by the mutual tariffs imposed by both countries. Nearly 40% of the affected companies experienced a decline in revenue due to the US tariffs.
Research findings show that these losses did not encourage American companies to relocate production back to their home countries. Only 14% of the surveyed companies increased production in the United States, while 36% chose to increase production in third-party countries. Additionally, 12% continued to increase production in China.
These impacts are particularly common in the industrial and manufacturing sectors. More than 90% of the companies surveyed reported being affected.
Although import tariffs implemented under the "phase-one" deal may have narrowed the trade deficit between the U.S. and China, they haven't revitalized American manufacturing. The report notes that since Trump’s implementation of “Liberation Day” tariffs, there has been no substantial change in either U.S. manufacturing capacity or its overall dependence on imports.
Data also shows that nearly half of the companies surveyed were affected by US export controls and sanctions. The survey confirmed that US export controls failed to achieve the goal of preventing China from acquiring US technology. Instead, the proportion of companies whose sales decreased continued to rise.
Regulatory measures are forcing buyers to seek new sales channels. 61% of the affected companies said that their sales share has flowed to Chinese competitors; another 47% of the surveyed companies said that their sales share has been taken by international competitors.
The report bluntly states, "Due to US export controls, half of the surveyed companies have lost market share in China, and this proportion is astonishingly high."
"The South China Morning Post summary report states that "American companies are paying the price for Trump Administration's trade policies towards China."
After US President Trump's historic visit to China, on May 20, the Chinese Ministry of Commerce explained the preliminary results of Sino-US economic and trade consultations. Regarding the export control of rare earths, it was stated that the Sino-US economic and trade teams had conducted thorough communication on issues related to export control. Both sides will jointly study and resolve each other's reasonable and legal concerns. The Chinese government implements export controls on key minerals such as rare earths in accordance with laws and regulations, and reviews applications for licenses that are compliant and for civilian use. China is willing to work with the US side to create favorable conditions for promoting mutually beneficial cooperation between enterprises of both countries and ensuring the safety and stability of the global industrial and supply chains.
The Ministry of Commerce also stated that both China and the US reaffirmed their commitment to continue implementing the achievements made in previous economic and trade consultations. The economic and trade teams of both sides will maintain close communication and consultation, and will promote the extension of the joint arrangements for economic and trade consultations in Kuala Lumpur.
In October 2025, China and the US reached a joint arrangement in Kuala Lumpur to resolve their respective economic and trade issues. Certain tariffs and non-tariff measures were suspended until November 10, 2026. These include the US's 24% reciprocal tariffs and China's corresponding countermeasures; the US's export control rules for 50% penetrability and China's related export controls; as well as the US's 301 investigation measures regarding China's maritime, logistics, and shipbuilding industries and China's corresponding countermeasures.
The person in charge of the US Department of Commerce's Bureau of International Trade said that these arrangements are of great significance for the stability of Sino-US economic and trade relations. Prolonging these arrangements is in the mutual interests of both countries and in line with the expectations of the international community.
