The United States finally started to work. On July 6, the United States announced that it would impose tariffs on the $34 billion Chinese exports to the United States. The trade war between the world's top two economies was officially launched. Will China immediately fight back?
In response to this problem, several ministries and commissions in China have clearly given their answers. The spokesman of the Ministry of Commerce said that China promised not to shoot the first shot, but in order to defend the country's core interests and the interests of the people, it had to be forced to make necessary counterattacks. In fact, when the United States announced the imposition of tariff measures on China in mid-June, China immediately launched an anti-counterfeiting list, and decided to impose tariffs on 545 items worth about US$34 billion originating in the United States from July 6. Involving agricultural products, automobiles, aquatic products, etc. The relevant person in charge of the Customs Collection and Administration Department of the General Administration of Customs said that the introduction of tariffs on some imported goods originating in the United States will be implemented as soon as the US tariff increase measures are in force. Trade wars start, What impact will it have on the people and the photovoltaic industry?
First, the impact on the people
1, which may result in a decline in the actual income of the working class and the risk of unemployment;
2, will bring the risk of rising prices;
3. Risks that may reduce the level of consumption of ordinary people;
4, will bring the risk of shrinking the money bags of ordinary people;
5. It will bring the risk of shrinking the value of the family assets of ordinary people.
Second, the impact on the photovoltaic industry
1, the impact on China's photovoltaic industry
The US announced that it will impose tariffs on Chinese products exported to the United States worth US$200 million. The import of solar cells and components is included, which means that 25% of the increase in tariffs and anti-dumping will be imposed simultaneously. .
Undoubtedly, the high superimposed tariff will make the domestic component products lose the possibility of going to the US market. If it is only the export of components, it will not affect much. After all, the Chinese component industry has faced double-reverse situation for many years. The layout is global. We can see from the capacity distribution map published by the China Photovoltaic Association at the end of 2017:
In the case of China's component industry, the United States' 25% increase in tariffs does not have a major impact on the direct export of Chinese components to the United States. But this Sino-US trade war not only affects exports, but also affects imports, because it has increased 2000 in the United States. After the export value of billion US dollars, domestically increase the tariffs on products imported from the United States. In 2017, the total value of Sino-US trade was 3.95 trillion yuan, of which China exported 2.91 trillion yuan (about 450 billion US dollars) to the United States. Imports from the US 1.04 trillion yuan (about 150 billion US dollars), trade surplus with the United States 1.87 trillion yuan.
The United States announced an increase of 200 billion US dollars in goods to increase tariffs. For China, even if it increases the tariffs on all goods imported from the United States, it is only 150 billion US dollars. Obviously, it is impossible to increase tariffs on the value of equivalent imports. Even if the strength is not right. In other cases, China has no other choices and must take the shot. Otherwise, it will only suffer greater losses. The People’s Daily article has also indicated the attitude: 'to fight the war', 'to war and harmony'.
2, the impact on the US photovoltaic industry
China needs to export PV modules to the United States, and needs to import silicon materials from the United States. The United States has taken the initiative to open a trade war, which belongs to killing the enemy 1000 and self-damaging 800.
Not long ago, REC Silicon ASA announced that due to the direct impact of Sino-US trade disputes, the company's branch in Washington, DC, will lay off 40% of its workforce, about 100 jobs.
The company also decided to reduce production to around 25% of total capacity, which means that fluidized bed reactor (FBR) production in the second quarter will be reduced to 2040 tons, 240 tons less than the original production. The company did not mention its The factory business in Montana Bart will be affected.
REC Silicon said in a statement that the move would help the company maintain liquidity and fulfill its financial responsibilities while preserving its strength to allow for the re-opening of the Chinese market.
REC Silicon bluntly blamed the company's decline in its performance on the US-China solar trade dispute. The company said that the direct result of the trade dispute has been that the total number of employees has decreased by 500 since 2011, with revenue in 2017. It fell by 70% to just $272 million.
Since SalarWord filed a petition with the US government in 2011, REC Silicon has issued a series of layoffs and revenue loss announcements in the past few years. In July 2015, the company reduced its production in the US by half and stopped. In Washington's expansion plan, FBR production was cut by 2030 tons. In February 2016, the company said it would stop the production of polysilicon using FBR technology in the factory. In November of the same year, it cut 70 jobs. Last September The company laid off 30 employees at another polysilicon production site in Montana Bart. In February, it cut its stake in China's silicon material manufacturer NSF joint venture from 49% to 15.06%.
At the peak of 2011, REC Silicon's US revenues reached $1 billion and provided approximately 900 high-paying jobs. About 95% of the company's revenue comes from markets outside the US.