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Sino-US trade frictions intensify the impact on the LED display industry

Add Date: 2018-8-20    Clicks: 2317

Recently, Sino-US trade friction has attracted the attention of the whole world and has raised concerns about trade wars. The trade between the two sides was tense, and some of the economic policy measures announced by them each triggered a sharp shock in the stock market. As the world's first and second largest economy, China and the United States will have a great impact on global multilateral free trade. Then, China's LED display market is global, in the process of Sino-US trade game, what role does the LED display play? How do companies deal with trade disputes? These have become our current LED display The industry is more concerned about topics. This article attempts to explore some of the problems that China's LED display industry may face in the overall situation of Sino-US trade.
Sino-US trade dispute under multilateral trade and trade protectionism
At present, the global economy is highly integrated, and the links between countries and regions are unprecedentedly close. The industrial supply chain for commodity manufacturing is spread all over the world, and cooperation between countries and regions is unprecedented. However, in the process of moving towards the "global village" in the world, it is not always smooth. With the continuous advancement and deepening of globalization, a series of problems such as trade imbalance, lack of fairness, and discourse power are becoming more and more prominent. Therefore, various trade protections Doctrine and populism have gradually emerged, and globalization has been affected by the trend of "reverse globalization."
The World Economic Forum (also known as the "Davos Forum") held in Switzerland from January 23rd to 26th this year, the theme is centered around the issue of globalization. Klaus Schwab, founder and executive chairman of the World Economic Forum, said that competition between countries has intensified, social internal divisions have deepened, the world has become divided, and the challenges facing the world are extremely severe. Countries are more coordinated than ever before. Consistent and work together.
"Strengthening cooperation in a differentiated world" will become the theme of this year's forum, and it will highlight the urgency of solving the current problems of globalization.
The recent series of trade friction incidents is a concrete manifestation of the fierce confrontation between multilateral trade and trade protectionism. The rise of trade protectionism led by the United States is posing a substantial impact on the global multilateral trading system. Then, in this contest between globalization and "reverse globalization", why is the Sino-US trade dispute causing global concern and raising concerns about trade wars?
To understand this problem, in addition to looking at the world and having the overall view of the global economy, we must also clarify some of the major issues in Sino-US trade relations, especially the views and differences on the core issues.
Looking back on the economic and trade development between China and the United States, we will find that there has never been a calm since the establishment of trade relations between the two countries. China and the United States have always developed in friction and twists and turns. The annual MFN treatment review, trade-related or unrelated human rights issues, is a true portrayal of the characteristics of China-US trade relations before China's accession to the World Trade Organization (WTO). After China's accession to the WTO, with the development of economic and trade relations between the two countries, the frequency of trade frictions has increased. It is understood that the United States has become the country with the most trade frictions with China. More than 20% of US companies’ dumping allegations against overseas competitors involve China.
Although China-US economic and trade exchanges are increasingly close, there are huge economic interests and great complementarities. However, due to structural differences between the two sides, such fierce trade frictions can not help but worry about the prospects of Sino-US economic and trade relations.
In addition, a more overlooked issue is that US trade has never been a purely economic decision, but a balance between economic interests and political reality. Sino-US economic and trade frictions are by no means so simple as economic issues. We can also see this from the latest economic decisions of the United States. For example, on November 28, 2017, the US Department of Commerce issued an announcement to independently launch a “double-reverse” investigation on the general-purpose aluminum alloy plates imported from China. This is the first time that the US Department of Commerce has not applied for domestic industry applications for 25 years, but has independently initiated Trade remedy investigation. Obviously, this is beyond the scope of economic issues.
Some people believe that China, as a beneficiary of globalization, as a major contributor to stabilizing the world economy and promoting global economic development, plays a very important role in maintaining global multilateral trade. After Trump took office, he put forward the slogan of "US priority", which has challenged the global multilateral trading system. China, as the largest trade target of the United States, is the first to bear the brunt.
Whether this view is right or wrong, we don’t judge here, but Trump, who is a businessman, has made a series of actions against China after he took office, but it has actually aggravated the tension between the two countries’ economic and trade relations and triggered global Concerns about the “trade war”.
In August 2017, US Trade Representative Robert Wright Heze accused China of alleged “compulsory technology transfer”. The Office of the US Trade Representative announced that it initiated a "301 investigation" against China. By 2018, the United States had successively introduced trade measures aimed at China or closely related to China.
In January, the Trump administration announced a four-year and three-year global safeguard for imported large washing machines and photovoltaic products, each with a maximum tax rate of 30% and 50%. In February, the Trump administration announced a 109.95% anti-dumping tariff on imported cast iron sewage pipe fittings in China. On February 27, the US Department of Commerce announced an anti-dumping duty of 48.64% to 106.09% for Chinese aluminum foil manufacturers and a countervailing duty of 17.14% to 80.97%. On March 9, Trump officially signed a tariff order to impose a 25% and 10% tariff on imported steel and aluminum. On March 22nd, the Trump administration announced that it would impose a $50 billion tariff on Chinese goods due to intellectual property infringement and impose investment restrictions. On April 4th, the US government issued a list of tariffed goods, which will impose a 25% tariff on China's 1,333 US$50 billion worth of goods.
This series of China against the United States has also adopted a series of counter-measures: On March 23, the Ministry of Commerce issued a list of suspension concessions for the US import of steel and aluminum products 232 measures and sought public opinions, intending to import from the United States. Some products are subject to tariffs to balance the losses caused by the United States to impose tariffs on imported steel and aluminum products. After the United States announced that it would impose a 25% tariff on Chinese goods for $50 billion, China also plans to impose a 25% tariff on 14 categories of 106 items of soybeans, automobiles and chemicals originating in the United States. The implementation date depends on the implementation of the tariff imposed by the US government on Chinese goods, and will be separately announced by the State Council Tariff Commission.
On April 5, 2018, US President Trump asked the US Trade Representative Office to impose additional tariffs on US$100 billion in Chinese imports based on the “301 Investigation”. On April 17, 2018, US Secretary of Commerce Ross announced the launch of anti-dumping and countervailing investigations on steel wheel products produced in China (ie, "double-reverse" investigation); the US Department of Commerce also initially cut the general aluminum imported from China. There is a subsidy behavior in the alloy sheet.
China, after issuing $100 billion in Chinese imports to the United States, said it is ready to respond to all possible preparations. If the US insists on going on the wrong road, it will accompany it to the end and resolutely respond.
For a time, the Sino-US trade war was "a hit"!

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