The impact of the US trade war on my country's lighting appliance LED industry
Following on July 6 this year, the U.S. government imposed a 25% sanction tariff on China’s 34 billion U.S. dollars of imports. On July 10, the Trump administration launched a target list and announced an additional 200 billion A 10% tariff will be imposed on products exported from China to the United States. The trade war may escalate further.
In 2017, the total export value of my country's lighting appliance industry totaled 40.88 billion U.S. dollars, of which various types of lighting products exported to the United States were about 10 billion U.S. dollars, and products exported to the U.S. market accounted for 24.5% of the total industry exports. . In the new target list launched by the White House, products in 30 sub-categories of 9 major categories in my country's lighting appliance industry cover 67% of all categories of my country’s exports to the United States; the amount involved accounts for about 82%.
In the new target list launched by the US government, most of the products are traditional lighting products, such as various tungsten halogen lamps, hot cathode fluorescent lamps, high-intensity gas discharge lamps, ballasts for discharge lamps, lamp accessories and Various lighting fixtures, etc. Among them, only some products in the lighting category (such as chandeliers and ceiling lamps, table lamps and bedside lamps, Christmas lamps, etc.) include some LED lighting products.
More than ten years ago, under the guidance of the government and industry organizations, my country’s lighting appliance manufacturers implemented new lighting technology development and product transformation and upgrading. As some companies still have a certain ability to produce traditional lighting products, some manufacturers seize the "golden tail" of traditional lighting products to pan for gold in the North American market. Therefore, these products currently export to the United States still occupy a certain amount and a large proportion. . For example, products such as tungsten halogen lamps and energy-saving lamps have always been the favorite electric light source products of American consumers. The EU market will gradually find it difficult to find tungsten halogen lamps after 2018, but although the US market has been expected to come to an end, the current market enthusiasm has not significantly diminished. Energy-saving lamps are widely available in the American market and have been the first choice for American families who love high-efficiency lighting products for many years. It is foreseeable that once the new target list of the US government is implemented, many consumers in the US will either spend more to continue their consumption habits, or they will change their consumption habits and choose new love instead.
At present, China is already the world’s largest producer and exporter of lighting electrical products. With the technological advancement of the industry, equipment upgrades and product updates, the lighting products produced in China are on the basis of good cost performance, as well as varieties and quality. Continuous improvement and improvement. In recent years, the number of various LED lighting products exported to the United States from my country has increased rapidly, especially LED bulbs, tungsten lamps, PAR lamps, downlights, tube lamps, panel lamps and other types of replacement light sources and lighting products have been exported in large quantities. . Many enterprises (especially large and medium-sized enterprises) have basically completed the transformation and upgrading of traditional lighting to LED lighting product production. Due to the convenient procurement of components and raw materials, and the complete industrial chain, especially with a large number of skilled workers, it can be expected that the competitive advantage of my country's lighting industry in the international market is still relatively obvious. But if the trade war escalates, market competition and corporate exports will face new pressures.
As the industries and markets of China and the United States have distinct characteristics and complementarities, export companies expect that under the background of relatively stable exchange rates, the markets of the two countries will be mutually beneficial. However, in the face of the volatile and uncertain policies of the Trump administration, Chinese lighting manufacturers will also have a variety of choices and preparations. On the one hand, pay attention to the Chinese government's "One Belt One Road" policy, broaden the perspective of exports, and increase the development of new markets in countries along the "One Belt One Road" route. On the other hand, adjust the focus of the market, adapt to the national economic construction and the improvement of the people’s consumption level, and transform the domestic market supply; especially in accordance with the call of the central government’s western development and targeted poverty alleviation, using effective funds and policies, In terms of the construction of emerging cities and towns, we will build corporate brands, cultivate sales channels, and seize opportunities for development in the domestic market.
(Author: Liu Shengping, China Lighting Association)
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