The list contains about 1300 independent tariff items, valued at about US$50 billion, involving aerospace, information and communications technology, robotics and machinery industries. The Merchants Electronics team has organized the following parts related to the semiconductor and electronics industry chains: LED, PCB, laser equipment, semiconductor equipment, capacitor resistance, thyristor diode, touch screen, optical prism lens, etc.
1. Review of the Consumer Electronics Industry Chain: The mobile tariff is not included in the current tariff list, which verifies our judgment in the strategy report released on March 27th. iPhones and many other consumer electronics products will not be included in the tax increase. The list of components and equipment manufacturers is less directly exported to U.S. end customers, and mainly to Foxconn, Heshuo, Flextronics, and other assembly plants, often re-exports in the bonded zone and settlement in Hong Kong, will not face direct tariffs. After the tariff list was released, the boots finally landed.
2. Security Comments: Security is not affected in this tariff list. Several Chinese-made versions (85284905/85284910, etc.) mentioned the video monitor, but in English it is a color video monitor and actually a monitor.
3. Laser equipment 84561170/84561170/84561190: Laser equipment for the production of printed circuit/processed metals Comments: Through the first time laser communication with Han nationality, the proportion of Han's laser exports to the United States was around 1%. The impact is minimal.
4. LED85414020: Light Emitting Diodes (LED) 85419000 : Diodes, Transistors, Similar Semiconductor Devices, Photosensitive Devices, Semiconductor Devices, LEDs, and Piezoelectric Crystals 90330020: LEDs for LED Backlighting Comments: (1) LED chip manufacturers exporting to the United States The proportion is very small, Sanan Optoelectronics exports to the United States between 2-3%, while the other two strong, Huacan photoelectric and Australian Ocean Shunchang exports to the United States is even more rare. (2) LED The downstream area has no influence. 85392920/85392930 and other projects mentioned tax increase for lamps, but the English text is filament lamps, ie incandescent lamps. (3) According to the LEDINSIDE statistics, 2017, the three major LED related to this taxation Project, the industry's total exports to the United States was only 46 million US dollars.
5. PCB85299005/85299006: PCBs for color TVs, ceramic substrates 85299033/85299089: Components for color TVs containing two or more PCBs, ceramic substrates 85299046: Components for PCBs combined with ceramic substrate components for color TVs Comments : (1) The tax increase in the PCB field is only aimed at taxing the PCBs used by TVs. Moreover, domestic PCB manufacturers exporting to the United States is relatively low. For instance, Wintek Technology has less than 1% income from the United States. (2) There are more entries (85287130/ 85439068, etc.) refers to printed circuit components (PCA), but PCA is not a PCB.
6. Panels 90138070/85284925/85287262, etc.: Comments on the taxation of monitors and color TVs: (1) In Chinese version, 85299063/85299068 refers to the panel, but it is the face plates in the English text, not the LCD panel. (2) After confirming with BOE for the first time, its US customers are only Hewlett-Packard and Dell, and more are exporting factories to Malaysia. (3) This list is mainly aimed at the taxation of displays and color TVs downstream of the panel. Its purpose is Protecting the US home-grown monitors and color TV brands. No real impact on the panel. (There may be follow-up adjustments in the supply chain, such as increased sales of American television brand manufacturers, thereby increasing the procurement of BOE)
7. Semiconductor Equipment 85437020/85439012: PVD Equipment and Components 85437097: Washing Machines Review: At present, North America’s US exports account for less than the median number, and this trade war will highlight the importance of autonomous control. Localization process will further accelerate
8. Touch screen 85437095/90330030: Touch screen installed in the display device Comments: (1) Touch screens are the original English texts, and Touch Panels are the products of Ophelia Technologies, they are not the same products. (2) Direct from Ophelia Technology Downstream is an assembly plant, exports to the United States accounted for less than the median.
9. Discrete Devices www.xinpiansheji.com Chip Design 85419000 : Diodes, Transistors, Similar Semiconductor Devices, Photosensitive Devices, Semiconductor Devices, LED and Piezoelectric Crystals 85413000: Thyristors, Bidirectional Trigger Diodes, SCR, Non-Photosensitive Devices 90132000: Lasers , Non-Laser Diodes 85414080/85414095: Photosensitive Semiconductors Comments: (1) Jiejie Microelectronics and Silan Micro's exports to the United States account for less than 1% (2) Yangjie Technology's exports to the United States are slightly higher (30% or less), but its More is achieved through the acquisition of the US brand MCC.
10. Capacitance resistor www.xinpiansheji.com Chip design 85321000/85322100/85322200, etc.: Aluminum electrolytic capacitors, tantalum capacitors, ceramic capacitors 85331000/85332100/85332900, etc.: Wirewound resistors, sheet resistance, etc. Comments: Aihua Group, Farah Electronics, Jianghai shares and other manufacturers export to the United States are less than 10%
11. Optics www.xinpiansheji.com chip design 90029020/90029040/90029095: prisms and lenses used in optics, and other components Comments: Fujing's optical export tax number is 90019090, not in the tariff list
China Merchants Electronics believes that this trade war has little impact on LED, PCB, laser equipment, semiconductor equipment, etc. Mobile phone terminals, security and panels are not included in the tax increase list.
In the proposed tax increase list, there is a real hammer. Before the new tariff is formally launched, the '301 investigation' still needs several steps to complete?
April 23: Deadline for the public to attend the hearing. The application must include a summary of the testimony. The speech should not exceed 5 minutes.
May 11: Deadline for submission of written comments by the public. Comments may relate to: whether an item on the list should be retained or removed or new items added; tax level; general level of duty after taxation. US Trade Office Will publish written opinions.
May 15: The 301 Committee will hold a public hearing at the main hearing office of the U.S. Trade Representative Office at 10:00 on the same day.
May 22: The deadline for the public to submit counterarguments after the hearing.
In response, the Ministry of Commerce of the People's Republic of China issued an announcement this afternoon on the introduction of tariffs on certain imported products originating in the United States. The announcement pointed out that the U.S. government announced that it would add imported products originating in China in accordance with the result of 301 investigation unilaterally. A 25% tariff was levied, involving about 50 billion U.S. dollars in exports to the United States. This U.S. measure has clearly violated the relevant rules of the World Trade Organization and seriously violated China’s legitimate rights and interests under the rules of the World Trade Organization and threatened the economic interests and security of the Chinese side.
In order to safeguard China’s legitimate rights and interests in violation of international obligations of the United States, the Chinese government will rely on laws and regulations of the “Foreign Trade Law of the People’s Republic of China” and other basic principles of international law to protect soybeans and other agricultural products originating in the United States. , Chemical products, aircraft and other imported goods are subject to tariff levying measures, the tax rate is 25%, involving the amount of China's imports from the United States in 2017 about 50 billion US dollars. Final measures and effective time will be announced separately.