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According to a report from the South China Morning Post, several Chinese listed companies have informed investors that the tariffs imposed in the recent trade war are irrelevant to them, mainly because past U.S. sanctions have already prevented their products from being sold to the U.S. Even though China’s high-tech industry has many world-class companies, the products they develop are competitive outside of China. However, due to the sanctions imposed on these entities in recent years, it is difficult to find products from companies like Huawei and Loongson outside of China.
The report compiled information from companies including Cambricon Technologies (AI chips), Loongson (CPU), Lianhe Microelectronics (IoT IC), Jiangbolong Electronics (storage system manufacturer), and Zhaoxin Microelectronics (RF chips), all of which stated in their reports to investors that they would not be affected by the high tariffs imposed by the U.S. government.
The report cites these companies’ statements, indicating that they indeed will not be impacted by the punitive tariffs imposed by the U.S. on Chinese products:
1. Cambricon stated that in 2023 and 2024, overseas market revenue accounts for less than 1% of its total revenue. The company was already placed on the U.S. Entity List in 2022, so the new trade measures will not have a significant impact on its business.
2. Huawei has not made any notable statements, but its operations in China and Russia will clearly not be affected by U.S. government sanctions.
3. Loongson pointed out that the new import tariffs have not negatively impacted its operations.
4. Lianhe Microelectronics revealed that all of its products are manufactured and sourced in China. This internal sourcing protects it from external disruptions.
5. As for Jiangbolong Electronics, a major storage solution provider, its Brazilian subsidiary has played a key role in buffering the impacts of the ongoing trade disputes. Since the company sources 3D NAND Flash memory from all major suppliers, its Brazilian subsidiary is likely able to supply U.S. customers.
6. Zhaoxin Microelectronics noted that its RF chips focus on domestic supply in China, so the U.S. market and tariffs are not an issue.
The report indicates that Chinese hardware manufacturers are shipping a large volume of products, including domestic chips and Chinese production systems that utilize these chips. However, so far, this industry is primarily targeting the domestic market, so there is currently no financial impact on the aforementioned companies.
Source: EETOP
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