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The impact of trade war between China and the United States on the machining and welding steel structure manufacturing industry

The overall impact of US tariffs on China's machinery industry: At present, the direct impact for the machining industry is only the two high-end technology industries of modern railway (high speed rail) and industrial robots. The indirect impact is that the demand for the container industry is slightly down (affected by the growth of World Trade). It does not rule out the possibility that the US will further expand the scope of the tax increase (and tax increases on low-end manufacturing) for Chinese products, such as welding steel structure, machining parts, auto parts and so on. According to Chinese customs statistics data, According to the data of the Chinese customs and Statistics Department, in 2016, the export of mechanical equipment (without electrical equipment) accounted for 6.4% of China's total exports to the United States, and in the sixth major export industries, the majority of the machinery exported to the United States were in the middle and low end products with cost advantages. At present, the United States is mainly concerned with the issue of compulsory technology transfer and intellectual property protection in Sino US trade, and the tax raising industry mainly involves the high-end technology industries, such as aviation, modern railway (high speed rail), industrial robots, new energy vehicles, high technology and so on. However, the definition of the tax industry published by USTR is rather vague. After 15 days, a list is announced, which does not exclude the possibility that the United States will also raise taxes on China's low-end manufacturing industry, such as welding components, machining parts, steel structure etc.

 

If the trade war is opened, China will increase the import tariff of American mechanical products, or will accelerate the import substitution of domestic high-end equipment, which may be an opportunity for the development of domestic high-end equipment. After nearly twenty years of industrialization and globalization, China already has the foundation of advanced manufacturing technology and industrialization, and has entered the bonus stage of engineers. In 50s, the Soviet Union also sanctioned China, but the Chinese man made its own atomic bomb and hydrogen bomb, building a heavy industrial system in China, preparing for the future heavy industry of China. At present, China is the largest port machine, container, ship, high speed rail equipment, and nuclear power equipment production base in the world. Industry changes are not transferred by individual or state will.  In addition, most of the parts of the high-end equipment are imported from Japan and Germany, such as robot reducer, CNC machining tools and robot control system, high-end hydraulic parts, high-end car chassis and so on, which are less affected by the trade war between China and the United States. Of course, technological cooperation between China and the United States and the acquisition of US businesses will be affected, which will be unfavorable to the development of China's manufacturing industry.


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