In today's world, the number one economic power should be the United States! On December 22, 2017, the White House signed into law the Tax Cuts and Jobs Act, which takes effect in January 2018. Do not look down upon this act, its formal implementation, will affect the development of the entire world economy, especially the export-oriented countries and regions, the impact is more far-reaching. Today we do not talk about the impact of the global economy, also do not talk about the impact of China's macro economy, we just talk about what will be the impact of the US tax cut bill on China's LED display industry? 

 

 

I. Although the tax reduction in the United States will not lead to a significant tax reduction in China, the tax reduction in the United States will still have a certain impact on China's LED display industry. As a big country in LED display manufacturing, China has a complete LED industrial chain and a huge scale advantage. At this point, there is no other country in the world that can compare with us. The industrial advantage and position we have achieved is not easily shaken by any country. So even if a TAX cut in the United States could attract a company and investment back to the United States, it would not have a big impact on the LED display industry. However, under the premise of "America First", Chinese LED display manufacturers may face problems in anti-subsidy, anti-dumping and intellectual property rights.  

 

On the evening of January 30, 2018, US President Donald Trump said in his State of the Union address that Competitors such as China and Russia challenge US interests, economy and values. He also said he would work to fix "bad trade deals" and negotiate new ones. And will enforce strict trade rules to protect American workers and American intellectual property. We can also see that Trump is not just talking about it, with the us recently imposing high tariffs on imported solar panels and large washing machines. As the world's largest economy, the United States is also one of the main markets for China's LED display manufacturers. A group of domestic first to overseas display enterprises, but also to the United States market as the main battlefield. In recent years, more and more domestic display companies go overseas, while the US market has always been regarded as a high-end market, and its rich profits like flowers attract bees to attract Chinese LED display manufacturers. Once the United States to Our LED display companies to adopt similar measures to photovoltaic products, the consequences can be imagined.

Three, how to prevent and avoid this crisis, should be our CURRENT LED display enterprises must pay attention to things. Especially in the face of rising trade protectionism, companies facing overseas markets must change their business thinking and not rely too much on a single market. It is worth mentioning that, according to the assessment of an authoritative international organization, the total size of China's domestic consumption will surpass that of the United States for the first time in 2018. This means that after 2018, the largest market in the world will be our China. Moreover, the potential market size of Our country is three to four times that of the United States. In addition, the INTERNATIONAL Monetary Fund (IMF) released a forecast for global economic growth in 2018 at the recent Annual Meeting in Davos, among which China's economic growth in 2018 was estimated at 6.6%. Under the strong domestic demand driving force, the domestic market as the center, constantly innovate more high-quality conscience products, may be able to offset the impact of the US tax cut.

Economic development remains stable, coupled with huge market potential, this is a great good thing for China's LED display manufacturers. Therefore, in order to resolve the risk of TAX reduction in the United States to China's LED display companies, we should see the opportunities in the domestic market while exploring the open sea market.