June 01, 2020

China may increase the import tariff on semi-finished panel products from 3% to 5%

In 2011, China’s LCD TVs developed rapidly. Shipments of up to 44 million units in 2011 have become the largest market for LCD TVs in the world. In 2012, it will exceed 50 million units, which will bring huge business opportunities to the panel industry. In particular, Taiwan accounted for more than 50% of the domestic panel market, and it relied heavily on domestic exports. However, with domestic production of BOE's 8.5-generation domestic panel makers such as BOE and Huaxing Optoelectronics, its own supply ratio may exceed 40%, and it will also impact Taiwan. Panel industry development. Since last year, there have been four calls for domestic tariff adjustments, mainly focusing on the protection of domestic panel industries. It is rumored that China's import tariffs on LCD panel modules and panel semi-finished products will increase from the current 3% to 5% this year.

According to Xie Qinyi, vice president of DisplaySearch Greater China, domestic domestic LCD panel makers such as BOE, China Star Optronics and Nanjing Panda are increasing their LCD TV panel production capacity, and they need to catch up with Korean and Taiwan rivals in terms of technology and capacity stability. This is also the main reason for the domestic plan to increase panel import tariffs. The domestic panel manufacturer China Star officially opened its first 8.5-generation panel on August 8, 2011. The gap between its 8.5-generation line's development and mass production progress and BOE's gap has been reduced. In October 2011, Huaxing also officially entered the market. A small amount of trial production, the amount of film can be up to 3,000 glass substrates, in December it is planned to raise the amount of 18,000 tablets.

At present, the import tariff on semi-finished products of LCD panels in China is 3%, and the import tariff on panel modules is 5%. Domestic panel makers have lobbied to increase panel import tariffs in an attempt to foster local panel industries with cost-competitive barriers. The previously proposed rate of increase may increase from 5% today to 8% to 12%, but panel import tax may be Not in the upward adjustment range. Although domestic domestic panel makers are expected to benefit, TV makers will face upward pressure on costs and affect future LCD TV export performance.

The China Electronics Video Industry Association has repeatedly disclosed that the Association has not yet reached a conclusion on this matter, because from the point of view of the entire industry, the timing for the current increase in tariffs is not yet ripe. Because the domestic panel makers and TV makers are standing in opposition.

Xie Qinyi said that the tax rate currently heard at 5% is likely to be the result of the wrestling between the two parties. If the tax rate is only 5%, the panel maker in Taiwan will not affect competition and consider the cost of landing and setting up factories. The relative urgency is not so great. The continuous decline in the prices of LCD panels poses challenges to domestic domestic players. They need more protection to continue to grow.

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