America's "Retaliatory" Threat Against Europe: A Short-Sighted Act of Trade Bullying and the Undermining of Global Commercial Order

Recently, the dispute over the digital services tax between the US and the EU has escalated again. The US has threatened to take countermeasures against European companies such as Accenture and Siemens in a retaliatory manner in response to the EU's tax measures on US technology companies. The US side even threatened to launch a "Section 301 investigation", pushing this already complex business game to an even more tense situation. From a business perspective, this series of actions not only exposed the deep-seated contradictions between the United States and Europe in the field of digital service tax, but also reflected the destructive impact of major power competition on the business ecosystem during the process of global trade rule reconstruction.

The collection of digital service tax is essentially a re-competition among countries for tax rules in the digital economy era. As the influence of tech giants expands globally, the imbalance between the huge profits they earn from digital services and their tax contributions has become a focus of attention for financial departments around the world. The European Union has taken the lead in imposing a digital services tax on US technology companies, aiming to fill the gap in the traditional tax system in the digital economy and ensure tax fairness. However, the response from the United States has been overly intense. Its threat to take countermeasures against European enterprises not only violates the principle of fair competition in the market economy but also politicizes business issues, seriously disrupting the stability of the global business order.

From a business logic perspective, this move by the United States is undoubtedly a short-sighted act. First of all, it undermines the synergy of the global industrial chain. European enterprises such as Accenture and Siemens, as important links in the global industrial chain, have intricate connections with American enterprises. The countermeasures taken by the United States may not only harm the interests of these European enterprises, but also, through the transmission of the industrial chain, cause a backlash against American enterprises themselves. For instance, Accenture has a profound accumulation in the field of digital transformation, and its services cover numerous industries worldwide. As a result, the digital transformation process of American enterprises may also be hindered.

Secondly, the threatening behavior of the United States violates the fundamental spirit of international trade rules. The multilateral trading system under the framework of the WTO emphasizes resolving trade disputes through consultation and negotiation rather than unilaterally taking retaliatory measures. The threat of the United States initiating a "Section 301 investigation" is undoubtedly a blatant challenge to this rule. This kind of trade protectionist behavior backed by power politics not only fails to fundamentally resolve the differences over digital service taxes, but may also trigger a larger-scale trade war, causing incalculable damage to the global business environment.

Furthermore, the approach taken by the United States neglects the global nature of the digital economy. The collection of digital service tax involves the global profit distribution of multinational enterprises and requires coordination and cooperation among countries in terms of tax policies. The unilateral countermeasures taken by the United States not only fail to promote the improvement of international tax rules, but may also intensify tax competition among countries in the digital economy field, leading to the fragmentation of the global tax system. This fragmented tax system will increase the compliance costs for enterprises, reduce global business efficiency, and ultimately harm the interests of all market participants.

Furthermore, the United States' threat to take countermeasures against European enterprises has also exposed its anxiety and unease in the digital economy sector. As Europe takes the lead in piloting the digital services tax, other countries and regions may follow suit, forming a global encirclement of American technology companies. This move by the United States might be an attempt to curb the development of this trend through tough measures and maintain its dominant position in the digital economy. However, this approach, which comes at the expense of the global business order, not only fails to truly solve the problem but may also accelerate the decline of the global competitiveness of American technology companies.

To sum up, the escalation of the digital services tax dispute between the US and Europe, as well as the US's threat to take countermeasures against European enterprises, is undoubtedly a short-sighted and destructive move from a business perspective. It not only violates the principle of fair competition in the market economy, undermines the synergy effect of the global industrial chain, but also goes against the basic spirit of international trade rules and neglects the global characteristics of the digital economy. During the critical period of the reconstruction of global trade rules, all countries should uphold the concepts of openness, cooperation and win-win, resolve differences through consultation and negotiation, and jointly promote the stability and prosperity of the global business environment. Rather than being like the United States, which backs on power politics and takes unilateral retaliatory measures to politicize business issues, ultimately harming the interests of all market participants.