According to reports, the hearing will be held from 9:30 am to 5:30 pm on July 24, 2018, and from 9:30 am to 12:00 pm on July 25th. Business representatives include Applied Materials, Cree, Inc., SolarWorld Americas, Inc, Logitech, Inc., etc.; industry associations attending the hearing include the International Semiconductor Industry Association (SEMI), SIA, and Consumer Technology Association ( CTA) and so on.
For a long time, Trump has threatened to impose tariffs on Chinese exports to the United States on the grounds of 'unfair trade practices' and 'China's infringement of US intellectual property rights.' On July 6, the Trump administration officially announced $34 billion to China. The goods are subject to a 25% tariff, including machinery, accessories, electronics, agricultural ploughs, machine tools and communications satellites. Meanwhile, the United States also plans to impose a 25% tariff on US$16 billion worth of Chinese imports of electronic products and other accessories. This time, the two-day hearing is around the $16 billion product.
Because the vast majority of the $16 billion products are semiconductors and related products, this will have a major impact on the US semiconductor and related industries. According to USTR's Section 301, China Import Goods Tax List, for remote control, automatic The printed circuit components of the vending machine are listed among them. In addition, many parts used on the circuit board such as resistors and capacitors are also subject to tariffs.
Some analysts pointed out that the biggest impact of the new US tariffs in the technology industry is semiconductors and related products. The SIA estimates that the US imports from China will be US$2.5 billion in 2017. After the implementation of tariff sanctions, it is likely that this US$2.5 billion capacity will be generated. All transferred to the United States.
The Federal Reserve (FED) announced on July 17 that the capacity utilization rate of semiconductors and related electronic components jumped to 76.4% in June 2018 from 75.4% in May, lower than the 1972-2017 average (78.6%). The monthly index increased by 9.9% (monthly by 1.7%) to 163.0. In June 2018, the US semiconductor and electronic components manufacturing employment reported 370,900, a record high since February 2016, and the fifth consecutive month of expansion.
However, the $16 billion list of sanctions may be misunderstood. The US Semiconductor Industry Association (SIA) hopes that the Trump administration will remove 39 product categories from a series of Chinese imports worth about $16 billion. In the submission, SIA said that because most of the semiconductor products imported from China by the United States are designed or manufactured in the United States and then shipped to China for testing and packaging, the statistics on semiconductor imports from China are misleading.
The SIA responded to the US government's request for public comment on the latest taxation proposal. In the submission dated July 23, US time, the US proposal to impose tariffs on a series of semiconductor components and semiconductor-related products will weaken the US. The leading position in the semiconductor field is not conducive to the US chip industry's competition with rivals in the international market, and it also threatens the US company's market share in the Chinese market.
In addition, SIA believes that preparing a list of tariffs will have a negative impact on US exports and employment opportunities, and increase the cost of US consumer manufacturing of consumer products. More importantly, SIA said that if imported semiconductor components and semiconductors The tariffs on related products will allow US companies to pay customs duties for their own products, and will not help the United States to try to contain China's anti-competitive strategies or behaviors.
In the submission, SIA said that because most of the US semiconductor components imported from China are designed and manufactured in the United States, but shipped to China for packaging testing, the statistics on imported semiconductor components in China are misleading indicators.
Both SIA and SEMI representatives attended a public hearing of the US International Trade Commission (ITU) on the proposed tariffs; SIA estimated that the new wave of taxation list would affect China's imports of semiconductor chips worth about $3.6 billion. And products worth about $2.7 billion related to the semiconductor industry supply chain.
SEMI also stated in a submission that tariffs will cause unfair penalties for local semiconductor equipment manufacturers in the United States, because most of these equipment manufacturers import components from China; SEMI said that many of those parts are not supplied by US companies, or It is very difficult to purchase from non-Chinese manufacturers.
'We are worried that tariffs will impact US competitiveness,'' SEMI said: 'The cost of US semiconductor equipment manufacturers will increase, but the cost of non-US competitors remains the same; the impact of this trade initiative is only for non-US players Benefit. '
After failing to reach an agreement with China on a trade deficit of $375 billion, the Trump administration proposed a value of about $34 billion earlier this month, mostly for technology-related imported products, which is called a 25% tariff; The $16 billion worth of imported products have been levied at the same rate tariffs and will take effect in the coming weeks. In addition, the US government has also proposed 10% of the proposed series of Chinese imports worth about US$200 billion. tariff.
SIA and SEMI and the US semiconductor industry support the Trump administration's goal of restricting China's industrial policy with intellectual property, but the industry – and most economists and analysts – opposes tariffs, which they believe It will harm the global economy and will also punish local Americans and consumers.
SIA’s written opinion on the US International Trade Commission asserts: 'Unfortunately, the tariff proposal will not only make the US semiconductor industry punished, but also prevent China’s discriminatory trade policy and illegal intellectual property measures, or play The leverage of meaning forces China to change its behavior.'
As an alternative, SIA believes that the US government should ''use more effective and targeted policies,' such as combating intellectual property theft, and making better use of the World Trade Organization and multilateral actions with allies to resolve "All aspects of China's industrial policy are problematic."