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The Pain Of PV In The Sino US Trade War: How Long Will The US Seven Injury Boxing Still Have To Fight?
- Jul 18, 2018 -


The outbreak of war and fire and the outbreak of Sino US trade war


When it comes to trade wars, readers will never be unfamiliar with news reports. It is not exaggerated to say that a thousand kilometre can smell strong gunpowder.


At the beginning of this year, good president Trump took the lead in provoking trade troubles, and then intensified his efforts to increase the scope of trade shock and spread to many sectors of the trade. A series of measures made the Chinese angry and shocked the world. The world's two largest economy is on the opposite side, while other economies are also immune.


First, a set of data: according to the data issued by the General Administration of customs, China's Sino US trade value in 2017 was 3 trillion and 950 billion yuan, of which China's exports to the United States were 2 trillion and 910 billion yuan (about $450 billion), 1 trillion and 40 billion yuan (about 150 billion US dollars) from the United States and 1 trillion and 870 billion yuan to the United States trade in the United States.


To this end, Trump found a reason to launch a trade war: first, there is a big trade deficit between China and the United States; the two is that China is stealing American patents through joint ventures; and the three is that China is fostering its own enterprises to compete with the United States.


Trade war time of China and the United States:


In January 2018, the Trump administration announced that it "took 4 and 3 years of global safeguards for the import of large washing machines and photovoltaic products, respectively, with a maximum tax rate of 30% and 50%."


In March 9th, Trump formally signed the tariff act, "25% and 10% tariffs on imported steel and aluminum respectively".

In May 29th, the White House announced that it would impose a 25% tariff on imports of $50 billion from China, including "important industrial technologies". These include commodities related to the "China made 2025" plan.


In July 6th, the United States imposed a 25% tariff on imports of Chinese goods to US $34 billion, marking the beginning of a trade war. As a counterattack, China also imposed an import tariff of 25% on the same scale of American products on the same day.


On July 10th, the office of the United States trade representative issued a statement that the Trump administration would impose a 10% import duty on Chinese products worth 200 billion US dollars. The list of target products is clothing, TV parts and fridge. It means that the trade war will be further escalated.

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But is it exactly what it said? Recently, a mainstream media in the United States broke out the truth of the Sino US trade war and exposed the truth of concealing and distorting the trade war.


Taking the apple cell phone production chain as an example, China is actually in a relatively low end "assembly link" in the whole global production chain of the apple cell phone, while the high-tech companies in the developed countries such as the United States Apple Corp and other developed countries provide the technology and important cutting-edge components for the mobile phone. The vast majority of the value has entered into the Apple Corp and so on. A foreign enterprise for the core technology of the patent. Therefore, in the whole value chain, the Chinese are just making hard money. For a long time, the United States has been examining the trade relations between China and the United States. The practice is to calculate the trade gap between China and the United States with the total value of the products exported from China to the United States. Obviously, this is unfair.


In the past few months, the US government has been making an escalating trade war against China. At the moment, the fire continued. In view of the series of actions in the United States, the Ministry of Commerce of China said that China promised not to shoot the first shot, but in order to defend the state's core interests and the interests of the people, it had to be forced to make the necessary counterattack.


"Lying gun" at the end of trade war


Recently, the Trump administration published a list of 10% import tariffs on Chinese goods valued at $200 billion, making the trade war between China and the United States further escalating. Among them, solar photovoltaic products are on the list. It is understood that the US side has announced the latest round of 6031 tariff lists, which not only covers a lot of agricultural and chemical products and raw materials, but also includes photovoltaic inverter (product code 8504.40.95), AC components (solar panels attached to micro inverters) (product code 8501.61.00), and lithium ionization. Study the battery outside the battery to store the product.


The latest report shows that a hearing on the new round of tariffs will be held in from August 20th to 23rd. The deadline for submission of applications is July 27th, and the written testimony will expire on August 17th.


Not long ago, the United States began to impose an additional 25% tariff on imported solar cells and components from China. I believe you remember that in January 22nd this year, Trump signed a bill to impose a high tariff on imported photovoltaic products (4 years). The first year tax rate was 30%, and the next year was 5%. To 2021, the tax rate would be 15%. In other words, in addition to the 30% tariff imposed on all imported solar cells and modules in January this year, there is an additional 25% duty on Trump. This means that 25% increase in tariffs and anti-dumping and countervailing duties will be levied at the same time.


In fact, China's photovoltaic industry as the first battleground of Sino US trade war has long been ignited at the beginning of the year. Since the introduction of the "531 New Deal", the domestic market has turned to a frigid market. Most of the PV companies are considering to tilt the market share abroad. However, this Sino US trade war has further escalated, adding some uncertainty to overseas expansion of photovoltaic enterprises. What worries the industry is that the Sino US trade war is coming back. Will this bring another "cold winter" to China's photovoltaic industry? In 2012, the tragic scene of "photovoltaic winter" is still vivid.