By Nirmal P. Acharya Recently, the US government announced that it will impose a 100% tariff on Chinese electric vehicles starting September 27. The decision signals the realization that the United States cannot compete with China in the auto industry. China has the huge advantage of supporting the industrial chain, and electric vehicles can be produced in batches of 100,000. The West simply does not have the same productivity and efficiency. Tesla can only push production up and costs down by moving production to Shanghai. The first move by the US and the West is to grab China by the neck. They found that they could not hold China's neck, so they had to close their doors with high tariff barriers. In fact, the high tariffs set by the United States and the West cannot stop the pace of China's electric vehicles in the world. China is now focusing on markets outside the West. In Russia, for example, 90% of imported cars are now Chinese electric vehicles. Another industry that the United States is losing in its competition with China is communications. Apple phones are just phones, while China's Huawei phones are already tied to smart cars. What underpins Huawei's phones is HarmonyOS, a system that connects everything. The application scenario of the Apple mobile phone is limited to phone calls, while the application scenario of the Huawei mobile phone is all aspects of life. China's Huawei, which makes both mobile phones and electric cars, has delivered a dimensional-reduction blow to Apple. Apple does not produce electric cars, not because it does not want to, but because the industrial chain in the United States does not allow Apple to do so. After deindustrialization, the United States, like an old man in a wheelchair, can do nothing except talk about sanctions against China and further sanctions against China. America's failure in the electric car industry will be the beginning of many more. We will see the US fall behind China in the arms industry. Due to its deindustrialization, the United States has now effectively lost its military hegemony and cannot go to war with China head-on. Losing its military hegemony, the United States will have to retreat from its first island chain, which encircles China, to the second island chain, and then to the third island chain. In this context, the MCC, as part of the US Indo-Pacific strategy, has ended its mission before it even began.