The U.S. Tax List On Chinese Exports Has Little Impact On The LED Industry.
On April 4, 2018, the U.S. government officially issued a "301 survey" recommending a 25% tariff on Chinese products and a list of 1,300 tax codes.Set consulting LED research center (LEDinside) pointed out that in the listing of the LED products are mainly involved in industrial intermediates, chips and backlight products, China LED industry export American market proportion is low, therefore, for the essence of the Chinese LED enterprises limited impact.
Wang fei, chief analyst at LED inside, said that from the list of 1,300 products released in the us, there are several projects involving the LED industry, including 85414020,85419000,90330020.China is the leading producer of LED products. These three categories are industrial intermediates, and the demand market is mainly China's LED application products manufacturing enterprises, which are not directly used by consumers.As a result, the industrial intermediates account for a very low proportion of exports, only about 5 percent of the output of the LED industry, and most of the areas in South Korea and Taiwan have LED manufacturing areas.In addition, the proportion of direct exports to the us market is lower because of the small number of domestic LED applications.
LEDinside analysis, China's light-emitting diode customs code is 85414010, and the 85414020 listed in the United States is actually described as solar battery products in Chinese customs.Actually included in the list of duties, therefore, LED products exports in 2017, only $46 million, even 85414010 actually included in the tax program, is only about $129 million, a total of no more than $200 million, compared to the Chinese LED industry output value of more than billions of the size of the influence is quite limited.
On the other hand, a higher percentage of China's exports to the United States LED products are mainly concentrated in the downstream application class, items such as lighting products, 94054090940100, shows the class of 85312000, but the item is not within the scope of limitation on the 301 list.However, because few in number, the United States application products manufacturing enterprises lighting brands and sales channels most commissioned OEM in China, if the future of the application of product tax, I'm afraid it will cause the U.S. sales type product prices have risen sharply.