Sino-US trade war reconciliation LED screen export pressure is suspended
The trade friction provoked by the US has been going on for more than eight months since March of this year. It not only increases tariffs on export commodities, but also causes exchange rate changes to be noticed, causing different degrees of impact on various industries in China and the United States. . As far as the Chinese LED display industry is concerned, this Sino-US trade war has little effect on leading companies with strong product competitiveness and low substitutability, but due to the pressure of increased costs and reduced orders, it is absolutely great. Most of the LED screen enterprises with weak competitiveness and certain alternatives are facing the risk of production suspension, workers unemployment, and directly accelerate the reshuffle process of the LED display industry. However, at this critical time, China and the United States reached a consensus that many LED display companies once again saw the dawn of victory.
The most direct impact of the Sino-US trade war reconciliation is undoubtedly reducing the tariff cost of export products and increasing the volume of export orders. This is a key to export-oriented LED display companies. Under the weight of the economy, I was able to breathe.
On the other hand, influenced by Sino-US trade, in the past few months, the RMB exchange rate has been “falling down” and the RMB has continued to depreciate, which has brought huge costs to the LED display industry, which has introduced a large number of foreign equipment and accessories. Pressure, and benefit from the "handshake" and the sharp decline of US stocks in this period, the RMB depreciation situation suddenly reversed, and even the biggest two-day increase since the exchange reform in 2005, the short-term pressure of LED screen enterprises will be Great relief!