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What is the impact of tariffs imposed by China and the United States on UAVs

  2019-05-15

introduce:Today, "Why China Should Anger at America" is on the screen. Last night, in order to safeguard the multilateral trading system and safeguard its legitimate rights and interests, at 8 p.m. on May 13, the State Council announced that, in accordanc

Today, "Why China Should Anger at America" is on the screen. Last night, in order to safeguard the multilateral trading system and safeguard its legitimate rights and interests, at 8 p.m. on May 13, the State Council announced that, in accordance with laws, regulations and basic principles of international law such as the Foreign Trade Law of the People's Republic of China and the import and Export Tariff Regulations of the People's Republic of China, the State Council Tariff Principles Committee decided to import part of the imports originating in the United States from 10:00 on June 1, 2019. Commodities are subject to higher tariff rates.
This is in response to the tariff increase announced by the U.S. government on May 9. On May 10, 2019, the U.S. government announced that the tariff rate on goods imported from China on the $200 billion list would be raised from 10% to 25%. The list covers 6,031 taxes, including high-end manufacturing industries such as semiconductors, chemicals, pharmaceuticals, electrical and electrical equipment, as well as low-end manufacturing industries such as wood products and consumer goods such as food and furniture.
According to media reports, the United States will continue to impose tariffs on Chinese goods. The next round will impose tariffs on about $300 billion of imports from China, including mobile phones, laptops and other scientific and technological goods that are not included in the tariff list. Since 2018, the Sino-US trade war has pushed the export situation of foreign trade to a deeper level. Faced with increasing trade frictions, what impact will it have on domestic UAVs?
"Made in China 2025", closely related to UAVs, has become a target of attack in the United States.
Relevant media reports, the United States has pointed out that the introduction of the tariff list is to curb Made in China 2025. This is evident in a comparative map of the areas of tariff increase between China and the United States. China's tariff increase to the United States is mainly concentrated in fruits and dried fruits, while the United States'tariff increase to China is mainly concentrated in high-end manufacturing.
An announcement from the U.S. Trade Representative's Office (USTR) pointed out that the publication of this list is to curb Made in China 2025.
The USTR stated in the announcement that:
"According to the 301 survey, the United States decided to retaliate against China's (so-called) compulsory technology transfer and intellectual property infringement. President Trump had previously directed tariffs on goods valued at about $50 billion (315 billion yuan) in China, a figure set to compensate for the damage inflicted by the United States in its trade with China.
This list, elaborated by the trade institutions, lists more than 1,300 products and intends to impose tariffs on these Chinese imports in the future.
The announcement also highlighted that "China has been forcing U.S. companies to transfer high-tech technology and knowledge patents to domestic companies. The purpose of this is to achieve the goal of Made in China 2025, which will dominate the competition in the future economic field.
The starting point of this list is to crack down on China's manufacturing sector and minimize the damage to the U.S. economy.
Made-in-China 2025 is a document issued by the State Council in 2015, and is the first ten-year action plan for China to implement the strategy of building a strong manufacturing country. This document puts the development of new generation information technology, high-end equipment, new materials, biomedicine and other key scientific and technological fields to a strategic height.
The document clearly pointed out that the development of large aircraft should be accelerated, the development of wide-body passenger aircraft should be started in time, international cooperation should be encouraged to develop heavy helicopters, and the industrialization of trunk and branch aircraft, helicopters, unmanned aerial vehicles and general aircraft should be promoted.
With the support of "Made in China 2025", China's UAV market is growing at an annual growth rate of 40%. It is estimated that by 2020, the production of UAV will reach at least 60 billion yuan. By 2025, its scale will reach 180 billion US dollars, tripling the original level.
A professor of engineering research at the University of Tokyo commented on the development of China's UAV industry: now all technology is growing exponentially. In this case, the gap between the first and the second is also exponential. If the first reaches a certain level (often referred to as "singularity"), it will dominate. The second technology is just as late as garbage. China's unmanned aerial vehicle industry is about to do this.
And the share of Chinese-made UAVs in the U.S. market is nearly half of the country, which is expected to become the target of tariff imposition.
China's Unmanned Aerial Vehicle Enterprises'Price Increase Response
It is reported that last year, a consumer-grade UAV and self-timer pole manufactured by major domestic UAV export enterprises were included in the scope of tariff increases. However, due to the different market competitiveness of the two products, the present situation of the two products is also different. After the introduction of the tax policy, the company raised the price of the UAV for the first time and added the tariff effect to American consumers; the difference is that it lowered the price of self-timer rod, because the core competitiveness of the product is small.
According to Yuchen. com, in response to the tariff increase imposed by the United States last year, the State Council Tariff Commission implemented 5207 imported goods originating in the United States, including many components, including resistors, capacitors, semiconductors and silicon controlled switches, flash memory, etc. And will these components become tariff-imposed products have an impact on the domestic UAV industry?
Yang Jincai, president of Shenzhen UAV Association, said in an interview with Yuchen. com that the tariffs imposed by China and the United States would not have much impact on domestic UAV enterprises at present. "The domestic UAV industry chain is relatively perfect and large.

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