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U.S. unilateral sanctions against China, what is the future for the export of instrumentation industry?

Views: 6     Author: Site Editor     Publish Time: 2022-04-22      Origin: Site

After the US raised tariffs on US$200 billion of Chinese products from 10% to 25%, the US further threatened to impose additional tariffs on 25% of the remaining US$325 billion of Chinese products exported to the US. As a countermeasure, on the evening of May 13, the Customs Tariff Commission of the State Council of China decided to levy taxes on about $60 billion of imported goods originating in the United States from 0:00 on June 1, 2019. .

Increase tariff rates on imported goods. Among them, 2493 tax items are subject to 25% tariff; 1078 tax items are subject to 20% tariff; 974 tax items are subject to 10% tariff. 595 tax item merchants

Goods are still subject to an additional 5% duty. From the perspective of specific commodity categories, 5% are mainly concentrated in chemicals andcustom differential pressure measuring instrument - Hiltech instruments, 10% and 20% are related to food, and 25% are taxes.

Among them, agricultural products and food accounted for a larger proportion.

As my country's high-end analytical instruments rely heavily on imports, the impact of additional tariffs on instruments and meters will be inevitable.

The impact of the US-China trade war on exporters

The sensitivity ranking of Chinese industries to U.S. exports is: electronic equipment > mechanical equipment > clothing manufacturing (textile) > metal products > furniture > chemical products > plastic and rubber products > food.

From the fermentation of the event to now, I haven't heard much about the impact on the instrumentation industry. Many companies said there was no impact on the company's operating income and day-to-day operations. identical

At the same time, we will also pay close attention to the development of the situation, take effective measures to safeguard the interests of enterprises, reduce possible risks in trade with the United States, and maintain communication with investors. Of course, there are also

Many companies said that they will gradually upgrade their products in the future to reduce the impact of tariffs on corporate costs.

Instrumentation makers with capacity in Taiwan or Southeast Asia may benefit in the long run, as they can shift orders to places that avoid tariffs. For those that are not Chinese instrument makers, they may continue to face slumps as Chinese companies sell not many instruments to the US and move the rest to other non-US markets

Price competition, price reduction will have a serious impact on the price of instrumentation products

The impact of the Sino-US trade war on the market structure

As early as in the news broadcast a few days ago, the Chinese side has already stated that it does not want to fight, but it is not afraid of fighting, and it must fight when necessary. This tough declaration has been applauded by the Chinese people one by one. Instead, if it happens

Two days later, the "battle" caused the Dow Jones to plummet, and the American people had to pay the price. Even the White House's top economic adviser has publicly acknowledged that the trade war is a lose-lose. Everything has a good side and a bad side. It should be known that the low-end products of my country's instrumentation industry already have certain competitiveness in the domestic market, and the export volume is large, but the high-end analytical instruments rely heavily on imports, almost 100%. There is a growing demand for high-end products, and these high-end instruments are still reliant on imports, enough to make us sober that we are on track with the United States.

The huge technological gap between China and the US and the heavy reliance on core US technology, the recent "ZTE Incident" is a good example. In the United States, the labor cost of the United States is very high, and light industrial products are difficult to achieve self-sufficiency, and still need to be imported from other countries. Therefore, some people openly admit that a trade war will hurt both parties, which can be said to be a very rational view.

At the same time, with the escalation of the Sino-US trade war, the market structure will face redistribution, tariffs will be raised, the cost of many products will increase significantly, the purchasing power of users may decline, and it may appear in the second tier, choosing import and export commodities from other countries, such a new The trade pattern will open. Of course, affected by the technological monopoly of high-end analytical instruments in the United States, my country will also enter into further breakthroughs in technical barriers, move towards higher technology, and realize the autonomy of high-end analytical instruments as soon as possible.