Misunderstanding of Chern character

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I'm trying to understand the basics of the chern character before I get much more involved.

I'm really confused since (3) and (5) in the picture below seem to conflict. One says that addition goes to multiplication and one says that addition goes to addition.

Do I misunderstand the product in (3)? It seems like (5) is definitely right. Maybe the author meant addition in (3)?

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