The impact of the Sino-US trade war on the silicone rubber products industry
The ZTE incident, the increase in tariffs from 10% to 25%, the blockade of Huawei, and the recent intensification of the trade war. The news broadcast on the evening of the 13th also rarely used the word "trade war", and broadcasted the surprise attack, Shangganling and other films expressing the Korean War for several days. The meaning is self-evident.
The tariff has been raised from 10% to 25%, and the value of goods has been increased from 50 billion US dollars to 200 billion. It is a fatal blow to many manufacturing industries that rely on export trade (many silicone rubber products companies are mainly export-oriented) , it is the common people who are indirectly injured
Silicone Rubber Products Inspection Workshop
First, what is import and export trade in the vernacular, that is, the goods of one country are sold to another country, so that buying and selling is import and export trade (for example, the raw materials used in silicon and rubber products need to be imported), a country in order not to affect itself For the business of domestic products, different measures are usually taken to control the import volume, usually to control the import volume, and to increase the tariff,
And China is a big trading country. Now the US trade deficit with China is about 500 billion US dollars (trade deficit means that a country imports more than it exports). Now it should be understood why the US launched a trade war. The simple point is that you earn If you have more than me, I will add tariffs to you, and the increase in tariffs will naturally be included in the price of the goods, making the products uncompetitive, and then the orders will decrease, and the income of the company will drop. decrease in income
Silicone Rubber Products Workshop
But if you increase tariffs, you will increase tariffs. Why block Chinese technology companies? Perhaps it can be seen from the unreasonable demands of the US on China.
Here are the eight demands the U.S. has made of China:
1. Reduce the trade surplus by US$100 billion in one year, and then reduce it by another US$100 billion in the following year;
2. Stop subsidies for advanced manufacturing in "Made in China 2025"; accept potential U.S. import restrictions on "Made in China 2025" industries;
3. Implement "direct, verifiable measures" to prevent cyber espionage from infiltrating U.S. commercial networks;
4. Strengthen intellectual property protection;
5. Accept U.S. restrictions on sensitive technology investment in China without retaliation;
6. Reduce the current average tariff of 10% to the same level as the United States (3.5%);
7. Open service industry and agriculture;
8. The two countries must jointly review progress on a quarterly basis
Let's look at item 2, "Stop the subsidies for advanced manufacturing in "Made in China 2025". It can be seen that the ultimate purpose of the US's trade war is to interfere with the Made in China 2025 plan,
This is a completely unreasonable request, comparable to the Xin-Chou Treaty! Why do you interfere in our own affairs in China? Fortunately, China is not the China of many years ago, and it will no longer be slaughtered by others!
Speaking of the silicone rubber products industry, the impact of this trade war on our company is very limited, mainly due to the following two reasons:
1. At this stage, we mainly serve markets outside the United States, such as Japan, Southeast Asia and the domestic market. The automobile antenna rubber produced exceeds 80% of Japanese automobile brands. We have been the supplier of Brother printers for more than 10 years. BYD and Toyota are both Our long-term cooperative customers have maintained a compound growth of more than 30% in operating income for 3 consecutive years
2. Unlike other companies, we provide overall production and processing services from material, mold development to silicone rubber product manufacturing, reducing intermediate links, thus saving a lot of costs, and introducing automatic grinding machines and optical screeners to improve efficiency , While checking the quality, it also saves a lot of labor costs
Optical Screener
Finally, I quote the words of the news network to end:
Regarding the trade war initiated by the United States, China has long expressed its attitude: it is unwilling to fight, but it is not afraid of fighting, and it has to fight if necessary.
In the face of the US's soft and hard hands, China has already given the answer: talk, the door is open; fight, accompany to the end.
The Chinese nation, which has experienced more than 5,000 years of ups and downs, has not seen what kind of battles? "
In the great process of realizing national rejuvenation, there are bound to be difficulties, obstacles and even stormy waves. The trade war with China initiated by the United States is just a hurdle in China's development process. It is no big deal. China will surely strengthen its confidence, rise to the challenge, turn the crisis into an opportunity, and fight for a new world.
No matter how the external situation changes, the most important thing for China is to do its own thing well, continue to deepen reform, expand opening up, and achieve high-quality economic development.
Whether the U.S. wants to talk, fight, or take other actions next, China has prepared a full policy toolbox and is ready to deal with it comprehensively.
Just as President Xi Jinping pointed out, China's economy is a sea, not a small pond; strong winds and rains can overturn a small pond, but not the sea; after countless storms, the sea is still there!