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Chinese semiconductor, auto parts suppliers expect to gain from intensified US trade war
Their view reflects Chinese tech firms’ increased confidence in providing highly competitive alternatives to US imports
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Coco Fengin Guangdong
Some Chinese semiconductor and auto parts suppliers expect their businesses to benefit from the country’s escalating trade war with the United States, according to corporate filings.
Suzhou Everbright Photonics, which makes high-powered diode laser and radar sensor chips, said China’s retaliatory tariffs on American imports would prove helpful because the “cost of imported chips will be higher and uncertainties in the supply chain will be greater” for domestic clients.
The Shanghai-listed company, whose shares gained 5.4 per cent on Tuesday, said China is expected to be more steadfast in replacing imported chips with local alternatives, as the trade war intensifies.
That view was echoed by Chipsea Technologies (Shenzhen) Corp, which supplies semiconductors for home appliances and automobiles. The firm said the US-China tariff war would see local chips expand their market share on the mainland. Chipsea’s shares in Shanghai were up 4.38 per cent.
Their assessment reflects Chinese suppliers’ increased confidence in providing highly competitive alternatives to US imports, bolstered by the country’s tech self-sufficiency efforts, at a time when Beijing and Washington’s trade disputes have become increasingly fraught.
China’s Ministry of Commerce on Tuesday vowed to implement “countermeasures” against any move by Washington to further raise tariffs, after US President Donald Trump threatened to slap another 50 per cent duty on Chinese imports.
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