Samsung And LG To Close China LCD TV Factory
Apr 21, 2018
The South Korean media "The Investor" today quoted informed sources that under the influence of the Sino-US trade war being brewed, South Korea's two major technology giants Samsung and LG may be forced to close their LCD TV factories in China.
Samsung's and LG's 40-inch to 50-inch televisions produced at the China LCD TV factory were exported to the US market. Informed sources said that the two companies are close to making a decision to shut down the factory, because the United States may impose high tariffs on television products from China that they find unbearable.
A Samsung official complained: "This is almost inevitable. After the 25% tariff is imposed, the factory cannot even achieve a balance of payments." And an LG official said that LG is considering a series of options to deal with Trade conflicts between China and the United States. Some informed sources said that after closing China's LCD TV factory, Samsung and LG will transfer the affected manufacturing tasks to other countries.
Currently, Samsung and LG’s total television exports from China to the United States account for less than 10% of their total TV shipments, and most of their TV sets are produced in other markets, such as Mexico.
Recently, the U.S. government decided to impose a 25% tariff on 1,300 Chinese exports, including robots, communications equipment, chemicals, and electric vehicles. After a series of hearings and assessments, the U.S. government may finalize the list of goods subject to high tariffs next month.
