China is the world's largest producer of lighting products and a major exporter, with a share of about 45% of its GDP. The impact of the US-sponsored trade war on the domestic lighting industry needs to be analyzed.
From the data of the first quarter of this year, domestic lighting exports increased slightly compared with the same period of last year, about 2.79%. For special reasons, customs data was not released in the first half of this year. From the current situation, the export volume in the first half of the year was not very large because the first batch of 50 billion goods that were subject to tariffs did not contain lighting products. However, among the second batch of 200 billion commodities, almost all of the lighting products are covered, which will definitely have a substantial impact on the export of China's lighting products, which will affect the domestic market and the lighting industry.
In 2017, the export value of lighting was 41.8 billion, and the US market was about 10.8 billion US dollars, accounting for about 1/4 of the total export value. In 2017, the national total output value was 580 billion yuan, and the US market accounted for 12% of the total domestic output. If implemented, it will put pressure on domestic lighting companies that export to the United States. The two countries are negotiating and are not optimistic at the moment. Even if the negotiation results are more optimistic, there will be no tariffs on lighting products, and there will be some impact on exports in the second half of the year. It is understood that some importers in the United States began to purchase goods in advance, such as Christmas lights for Christmas, which will be reflected in the export data for the second half of the year.
If tariffs are implemented, lighting companies with the United States as the main market will face difficulties, and suppliers who supply various components will also have problems, which will further intensify domestic market competition.