The first shot of the trade war started | The US tariff list has changed a lot.

Medical Network July 9th, at 12:01 on July 6th, the largest trade war in economic history has officially started. The list of tariffs imposed by China and the United States has changed a lot. Among them, the latest list of the US 2. All drugs and some low - end medical devices were removed.

According to the Xinhua News Agency, the US Customs and Border Protection reported that the United States had 818 categories on the first batch of listings, worth $34 billion, at 00:01 local time on July 6 (Beijing time at 12:01 on the 6th). Chinese goods are subject to a 25% import tariff. As a counterattack, China also imposed a 25% import tariff on US products of the same size ($34 billion) on the same day. The tariff increase measures were imposed at 12 o'clock on July 6th, Beijing time. 01 points officially implemented.

The spokesman of the Ministry of Commerce said on the same day that China promised not to shoot the first shot, but in order to defend China's own interests, it had to be forced to make the necessary counterattack.

The 818 categories of the first batch of tariffs on the United States were mainly taxed in areas including automobiles, aircraft, and information and communication technologies, while China’s equivalent tariffs were imposed on 545 items of agricultural products, automobiles, and aquatic products. .

In addition, the two sides also have a second batch of goods subject to tariffs.

US President Trump said on July 5 that the tax on another $16 billion imported Chinese goods (second list) is being reviewed by the public and the taxation time will be announced separately.

According to the previous announcement by the Customs Tariff Commission of the State Council, China has imposed additional tariffs on 114 commodities such as chemicals, medical equipment and energy products.

It is worth mentioning that the second batch of tariff increases in the United States has changed significantly from the previous one.

According to the US Commodity Representative's Office (USTR) announced on April 3rd, the list of proposed Chinese commodities with tariffs, a total of 1,333 independent tariff items, with a total value of about 50 billion US dollars. However, the list has now become 1,102.

In fact, after the USTR announced the list of taxable goods in China, it was reviewed by public comments for two months. According to the USTR official website, about 3,200 written submissions were received during this period, and the final decision was:

Remove 515 items from the list originally proposed;

Newly added 284 items to target products that benefit from China's industrial policies;

Maintain 818 items in the original proposed list unchanged.

The 515 products that were deleted involved about $16 billion, many of which were necessary for US residents, including all of the 515 products. drug And some low-end medical devices were removed.

The reason given by USTR is that 'taxation may lead to a large number of China medicine Products abandon the US market, and suppliers from other countries need to pass the FDA's long approval process and cannot fill the market demand in a short period of time.'

Sino-US trade war carding Cartography: Cypress Blue equipment

From the list of commodities currently published, China’s tariff increase to the United States involves medical instruments For merchandise, it mainly includes the following six items:

90181310 NMR imaging equipment

90181930 Patient monitor

90185000 Other instruments and apparatus for ophthalmology

90189099 Medical, surgical or veterinary instruments and apparatus not listed in heading 90.18

90221400 Other medical, surgical or veterinary X-ray applications

90229090 Other equipment and parts listed in heading 90.22, accessories

After the United States removed the drugs in the second batch of lists and some low-end medical devices, the medical device products involved in tariffs imposed on China were greatly reduced.

The Cypress Blue Device combines the USTR's checklist report with a study by the CITIC Securities Research Department to sort out some of the medical devices that were removed from the list and the products still on the tariff list.

Some of the categories that were removed from the US new tax collection list

Figure from: CITICS Strategy Group

Medical equipment category still subject to tariffs in the new US tax collection list

Cartography: Cypress Blue Instruments

First of all, from the list of tariffs imposed by China on the United States, the most concerned is the 'MRI unit'.

According to the data released by China Medical Equipment in March 2018, the domestic market share of imported magnetic resonance MRI is as follows: Germany's Siemens is 35.1%, US General Electric 30.4%, Netherlands Philips 22%, Japan Canon 10.7%, China Neusoft 7.4%, China Lianban 1.1%, others accounted for 0.5%.

Once the tariffs are imposed, the above-mentioned market share of imported equipment will change. At the same time, in the context of accelerated import substitution, the chances of the rise of domestic brands seem to be larger.

4. After the United States imposes tariffs, China's medical device export structure may change.

In 2017, domestic medical device exports reversed the previous year's decline, with total exports reaching US$21.103 billion, a record high. Among them, the first 'customer' is the United States, and the export value to the United States is 5.838 billion US dollars, followed by Japan, 1.478 billion. Dollar.

Although the export volume has increased, the current export of medical device products in China is still dominated by low-value consumables and low-end products. The industry relies heavily on low-cost factors such as raw materials and labor. health care Appliances, medical supplies and dressings, the top ten export products, accounted for 44.5% of the total exports of medical equipment. This is why the United States removed some of the low-end medical devices out of the second batch list.

In recent years, China's high-end medical device industry has achieved rapid development under the support of the state, especially the imaging diagnostic equipment has gradually achieved import substitution. The influence of individual products, such as ultrasound and monitoring equipment, in the international market has gradually emerged. The United States has also seen This point, so we will add 284 new products to the products that benefit from China's industrial policy.

Chinese medicine Health care products According to the overall situation of China's pharmaceutical foreign trade released by the Chamber of Import and Export, the original medical equipment exports in China mainly rely on medical dressings and disposable consumables. Nowadays, the proportion of small and medium-sized medical equipment and high value-added products is increasing.

In 2016, the proportion of medical diagnostic equipment exports reached 16%, while the proportion of medical dressings and disposable consumables was only 4.2% and 5.9%, and the export of medical dressings fell by nearly 10% year-on-year. The product structure is being adjusted and continuously optimized.

However, the direction of the second batch of tariff-added tariffs in the United States is likely to return this export structure to its original location. At least, the structure of the medical device export market in China will change.