Trade Warn on LED Display Business
With the progress of technology, led display market continues to expand the scale of application, the relevant data show that 2016 global led display market size of 16 billion US dollars, is expected by 2020 global LED display market size will reach 31 billion US dollars. Faced with such a huge global market, the domestic led display companies have to the overseas market, and Europe and the United States is the focus of China's display business areas. Once the Sino-US trade war between, may lead to a chain reaction, which for our display business, is bound to cause a huge impact. In particular, the United States specifically for the protection of intellectual property rights, due to the lack of core technology, led chip upstream, in this regard the European and American enterprises rely on higher, in a weak position.
In fact, trade protectionism is not a US patent, any country in the world there is trade protection. Trade war has always been a hanging in the led display business on the head of the "Damnes Sword", that day may come down. At present, due to the domestic market competition, led market competition, in the case of declining profits, many display companies turn to focus on the operation of the overseas market. What is more, some display companies even completely abandoned the domestic market, turned to overseas markets. And some even bet on the US market. Obviously, this kind of egg on a basket of the practice, its anti-risk ability is very fragile. In the event of a trade war, the consequences will be disastrous.
Of course, in the face of trade war, no one will sit still. Therefore, how to avoid the risk, or for the occurrence of trade war will minimize the loss, it has become a display business should think about the subject. From this incident, if the United States to start 301 terms, the first of all when some of the trade-oriented enterprises, and those in the United States set up a subsidiary or branch, to achieve the "localization" of the business, may not Causing too much impact, after all, this is consistent with Trump advocated the "American priority" principle. It can be seen that the implementation of localized management is an effective way to resist trade protectionism. However, the implementation of local management, enterprises need to have a certain strength, this is not every display business can be achieved.
In recent years, China led display enterprises to expand the process of overseas markets, we will find such a situation: the vast majority of China's display business foreign trade are spontaneous, few companies can be combined with the national strategy. This "take the rivers and lakes" approach, because there is no national strategy to guide the ability to deal with the risk is relatively low, it is difficult to enjoy the various national preferential policies.
At present, the "one way along the way" is a major strategy for China's implementation, which is an important means for China to resolve excess capacity and balance the US sub-balance strategy. "One way along the way" is focused on infrastructure construction, which led display business, there is a huge business opportunities. If the enterprise can catch the "one way along the way" of the ride, escorted by the state, I believe its ability to resist risks will be greatly improved.
In short, companies can only get rid of the dependence on a single market in order to reduce the risk of trade war. The display business enterprises face the best way to trade war, only a rainy day。