China Electronic Circuit Industry Association

Issue 83

Information Department                                            February 2025

Weekly News | US imposes 10% tariff on Chinese products；Dongguan Wuzhu Junlian Electronic Technology Co., Ltd. was established; Chongda Technology responds to the limited impact of US tariffs on the company..

1、Industry

The Ministry of Commerce responds to the US imposing a 10% tariff on Chinese products

At around 8pm Eastern Time on February 1st, the White Palace released a fact sheet announcing the imposition of a 10% tariff on Chinese products imported to the United States, citing issues such as fentanyl. The Chinese side is strongly dissatisfied with this and firmly opposes it. The unilateral imposition of tariffs by the United States seriously violates the rules of the World Trade Organization, which not only fails to solve its own problems, but also undermines normal economic and trade cooperation between China and the United States. China will file a lawsuit against the United States for its erroneous actions with the World Trade Organization and take corresponding countermeasures to firmly safeguard its own rights and interests. China hopes that the US will objectively and rationally view and handle its own fentanyl and other issues, rather than threatening other countries with tariffs at will. The Chinese side urges the US to correct its erroneous practices, move towards the same direction as the Chinese side, face problems directly, engage in frank dialogue, strengthen cooperation, and manage differences on the basis of equality, mutual benefit, and mutual respect. (CCTV News)

State Council Tariff Commission: Imposing tariffs on some imported goods originating in the United States

On February 4th, the Tariff Commission of the State Council issued a notice stating that, with the approval of the State Council, tariffs will be imposed on some imported goods originating in the United States from February 10th, 2025. The announcement states that on February 1, 2025, the US government announced a 10% tariff on all Chinese goods imported to the US, citing issues such as fentanyl. The unilateral imposition of tariffs by the United States seriously violates the rules of the World Trade Organization, which not only fails to solve its own problems, but also undermines normal economic and trade cooperation between China and the United States. The announcement clearly states that from February 10, 2025, tariffs will be imposed on some imported goods originating in the United States: a 15% tariff will be imposed on coal and liquefied natural gas, and a 10% tariff will be imposed on crude oil, agricultural machinery, large displacement vehicles, and pickup trucks. The specific scope of goods can be found in the attachment of the announcement; For imported goods listed in the attachment originating from the United States, corresponding tariffs will be imposed on top of the current applicable tariff rates. The current bonded and tax reduction policies remain unchanged, and the tariffs imposed this time will not be reduced. (People's Daily)

The Ministry of Commerce and the General Administration of Customs have decided to implement export controls on tungsten, tellurium, bismuth, molybdenum, and indium related items

On February 4th, the Ministry of Commerce and the General Administration of Customs jointly issued a notice stating that in order to safeguard national security and interests, fulfill international obligations such as non-proliferation, and with the approval of the State Council, it has been decided to implement export controls on tungsten, tellurium, bismuth, molybdenum, and indium related items. Export operators exporting the above-mentioned items shall apply for permission from the competent commerce department of the State Council in accordance with the relevant provisions of the Export Control Law of the People's Republic of China and the Regulations on Export Control of Dual use Items of the People's Republic of China. This announcement will be officially implemented from the date of its release. The Export Control List of Dual Use Items of the People's Republic of China has been updated simultaneously. (Caixin News Agency)

Ministry of Commerce: China has lawfully included PVH Group and Inina Company in the list of unreliable entities

On February 6th, China lawfully listed PVH Group and Innolux as unreliable entities. Regarding the list of unreliable entities, PVH Group and Ina Company in the United States have violated normal market trading principles, interrupted normal transactions with Chinese companies, and taken discriminatory measures against Chinese companies. China has lawfully included the two entities in the list of unreliable entities. Subsequently, the Chinese side will take corresponding measures against the above-mentioned entities in accordance with relevant laws and regulations. China has always handled export controls and unreliable entity lists with caution. The Chinese government, as always, is willing to strengthen exchanges and cooperation with countries around the world to jointly maintain the security and stability of global industrial and supply chains. We welcome enterprises from all over the world to invest and develop in China, and are committed to providing a stable, fair, and predictable business environment for law-abiding and compliant foreign-funded enterprises to operate in China. (Interface News)

Google is suspected of violating anti-monopoly laws, and the State Administration for Market Regulation has decided to initiate an investigation in accordance with the law

On February 4th, the State Administration for Market Regulation launched an investigation into Google for suspected violations of the Anti Monopoly Law of the People's Republic of China. Currently, Google is facing antitrust lawsuits in multiple countries, including a request from the US Department of Justice to split Google. Last August, Google was found by a US federal judge to have violated US antitrust laws in its search business. The US Department of Justice recommended that the federal court require Google to sell its Chrome browser, prohibit Google from signing exclusive agreements with third parties such as Apple and Samsung, and prohibit Google from prioritizing its search services in other products under its umbrella. The US federal judge will make a ruling on the remedial measures in this case before August 2025, and Google has announced that the company will appeal the case once the remedial measures are determined. (Pengpai News)

2、Market

Ministry of Industry and Information Technology: In 2024, the electronic information manufacturing industry above designated size achieved a revenue of 16.19 trillion yuan, a year-on-year increase of 7.3%

On February 6th, the Ministry of Industry and Information Technology released data showing that in 2024, the electronic information manufacturing industry above designated size achieved a revenue of 16.19 trillion yuan, a year-on-year increase of 7.3%; Operating costs amounted to 14.11 trillion yuan, a year-on-year increase of 7.5%; Achieve a total profit of 640.8 billion yuan, a year-on-year increase of 3.4%; The operating revenue profit margin was 4.0%, an increase of 0.04 percentage points from January to November. In December, the operating revenue of the electronic information manufacturing industry above designated size was 1.74 trillion yuan, a year-on-year increase of 8.4%. (Ministry of Industry and Information Technology website)

In December 2024, China accounted for 41% of the world's automotive market share

On February 9th, Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, announced that the world's automobile sales in December 2024 reached 8.54 million units, a year-on-year increase of 4%. The peak in December 2024 is basically the same as that in December 2017, reaching a high level in previous years. The sales volume from January to December 2024 was 90.6 million units, a year-on-year increase of 2%. Since 2020, China's world share has continued to increase, reaching 33.8% by 2023 and 34.7% by 2024. The car market has continued to grow strongly since August, with a sales share of 41% in the Chinese car market in December, reaching a historical high in the world market share. (Golden Ten Data APP)

1534 major projects with a total investment of 660 billion yuan were jointly launched in Jiangxi in the first quarter

On February 5th, the first day of work after the Spring Festival holiday in the Year of the Snake, Jiangxi Province held a conference on the joint construction of major projects at the provincial, municipal, and county levels in the first quarter and the promotion of major projects in 2025. A total of 1534 major projects with a total investment of 660 billion yuan were jointly started. On February 5th, Jiangxi held a conference on the joint construction of major projects at the provincial, municipal, and county levels in the first quarter, as well as the promotion of major projects in 2025. From the perspective of project structure, there are 28 comprehensive transportation projects with a total investment of 68.61 billion yuan; 10 projects in the energy sector with a total investment of 18.32 billion yuan; 31 water conservancy projects with a total investment of 12.8 billion yuan; 18 projects in the field of new infrastructure, with a total investment of 10.08 billion yuan; There are 163 projects in the field of urban infrastructure, with a total investment of 52.94 billion yuan; 760 projects in the manufacturing industry with a total investment of 317.64 billion yuan; There are 243 projects in the field of modern service industry, with a total investment of 103.77 billion yuan; 73 projects in the field of modern agriculture, with a total investment of 21.44 billion yuan; 85 public service projects with a total investment of 22.69 billion yuan; There are 123 projects in the field of ecological and environmental protection, with a total investment of 31.71 billion yuan. (China News Network)

By 2025, Guangdong will arrange 1500 key construction projects with an annual planned investment of 1 trillion yuan

On February 5th, the Guangdong Provincial Government Information Office held a press conference (live review) for the Guangdong Provincial High Quality Development Conference. At the conference, the main contents of the "Action Plan for Building a Modern Industrial System in Guangdong Province by 2025" and the "Development Report on the Modern Industrial System in Guangdong Province (2023-2024)" were introduced, and relevant support policies for the construction of Guangdong's modern industrial system were interpreted. The conference also answered questions from reporters. Ai Xuefeng, Director of the Development and Reform Commission of Guangdong Province, revealed that by 2025, Guangdong Province will arrange 1500 key construction projects with an annual planned investment of 1 trillion yuan, of which 50% will be industrial projects. There will be 380 industrial projects in five major categories, including new generation information technology, biology, high-end equipment manufacturing, new materials, petrochemicals, and steel, with an annual investment of 165.8 billion yuan. (First Financial)

3、Enterprise

Japan's AIST and Intel are working on developing the next generation of quantum computers

On February 7th, the Institute of Advanced Industrial Technology (AIST) in Japan announced a partnership with Intel Corporation to jointly develop the next generation of quantum computers equipped with Intel chips. Both parties have officially signed a memorandum of cooperation and plan to launch related projects in Ibaraki Prefecture, Japan in the spring of 2025. The goal of this project is to successfully build an industrially usable system containing tens of thousands of quantum bits by the early 2030s, which will be over a hundred times larger than the current most powerful quantum computers. Intel has developed a quantum processor called Tunnel Falls specifically for this collaboration. This processor utilizes quantum dot technology to create spin qubits, which can be applied to commercial CMOS on 300mm wafers with a yield rate of up to 95% and high commercial feasibility. Xinhua News Agency

BlackRock plans to recruit 1200 people to expand its support center in India and build AI capabilities in the country

 On February 5th, according to informed sources, BlackRock plans to recruit nearly 1200 people, expand two support centers in India, and build artificial intelligence (AI) capabilities in the country. This world's largest asset management company is recruiting talent for its two iHubs located in Mumbai and Gurgaon (a satellite city near New Delhi). According to informed sources who requested anonymity due to undisclosed information, BlackRock's proposed acquisition of data company Preqin will also take over a so-called global capability center located in Bangalore, which has approximately 500 employees. According to informed sources, the current number of employees in the Gurgaon and Mumbai offices is about 3500. Insiders say that BlackRock hopes to build an artificial intelligence team and will hire engineers and data experts once the plan is finalized. A spokesperson for BlackRock, headquartered in New York, declined to comment on the recruitment plan. (Global Market)

MLCC leading enterprise's net profit increased by 43%

 On February 10th, according to CPCA printed circuit information, due to the demand for AI servers, related orders increased, and global MLCC leading factory Murata Manufacturing saw a rebound in orders, with a 40% surge in net profit for the previous quarter. According to the financial report released by Murata Productions for the previous quarter (October December 2024), the consolidated revenue increased by 2.0% compared to the same period last year to 448 billion yen. The consolidated operating profit decreased slightly by 0.3% to 76 billion yen due to a decrease in utilization rate, and the consolidated net profit surged by 43.8% to 71 billion yen. (CPCA Printed Circuit Information)

Dongguan Wuzhu Junlian Electronic Technology Co., Ltd. was established

 On February 6th, according to the Qichacha APP, Dongguan Wuzhu Junlian Electronic Technology Co., Ltd. was recently established, with Luo Xiangjin as the legal representative and a registered capital of 50 million yuan. Its business scope includes retail of electronic components; Manufacturing of electronic components; Sales of electronic components and electromechanical equipment; Manufacturing of electronic components and electromechanical equipment; Electronic product sales, etc. Qichacha's equity penetration shows that the company is jointly owned by Huizhou Junya Precision Circuit Co., Ltd., a subsidiary of Junya Technology, and Dongguan New Energy Electronics Partnership Enterprise (Limited Partnership). (Global Market)

Oscon obtained utility model patent authorization: "A dual channel fully automatic drill needle flipping and box reversing device"

 On February 5th, Securities Star reported that according to data from the Tianyancha APP, Oscon (002913) has been granted a new utility model patent titled "A Dual Channel Fully Automatic Drill Needle Flip Box Device". The patent application number is CN202421023007.0 and the authorization date is February 7th, 2025. Patent Abstract: A dual channel fully automatic drilling needle flipping box device, comprising a support box body, wherein parallel needle box flipping mechanisms are provided on the support box body, a belt conveyor mechanism is provided on the support box body and located below the needle box flipping mechanism, a lifting mechanism is provided on the support box body and drives the belt conveyor mechanism to rise and fall, and a grasping mechanism is provided on the support box body and located above the belt conveyor mechanism; Therefore, the present utility model can replace manual completion of the drilling needle flipping and box flipping operation process, and can achieve automatic docking and information transmission with other production processes, which will improve production efficiency, avoid harm to people, and reduce costs. Since the beginning of this year, Oscon has obtained 7 new patent authorizations, a decrease of 41.67% compared to the same period last year. Based on the company's 2024 interim financial data, the company invested 99.0794 million yuan in research and development in the first half of 2024, a year-on-year decrease of 14.8%. (Securities Star)

Shennan Circuit accepts research: Nantong Phase IV project plans to build a PCB process technology platform with HDI coverage and other capabilities

On February 8th, Shennan Circuit announced that the company has recently conducted investor relations activities with institutions such as China Construction Bank International and CIC HK, which will take place on February 7th, 2025, through telephone and online conferences. During the meeting, the company provided a detailed introduction to its main business situation. The company focuses on the field of electronic interconnection and has three main businesses: printed circuit boards, electronic assembly, and packaging substrates, forming a unique "3-InOne" business layout. In terms of PCB business, the company mainly engages in the design, research and development, and manufacturing of high-end products, with a focus on data centers, automotive electronics, and other fields, and has long been deeply involved in industrial control, medical, and other fields. The company's PCB business has factories in Shenzhen, Wuxi, Nantong, and Thailand projects (under construction). The company still has land reserves in its Nantong base and is ready for the construction of a new factory building. The fourth phase of the Nantong project has orderly advanced its infrastructure construction and plans to build a PCB process technology platform with the ability to cover HDI and other areas. (Caixin News Agency)

Chongda Technology: Limited impact of US tariffs on companies

 On February 7th, Chongda Technology responded that since 2019, the United States has repeatedly announced the imposition of import tariffs on Chinese goods. Although the company's direct export revenue to the United States is relatively low, if the trade dispute between China and the United States further escalates in the future, it will increase the complexity and uncertainty of the macroeconomic environment, damage the normal economic order of international trade, and have a certain impact on the development of the company's export business to the United States, thereby affecting the company's business performance to a certain extent. In response to the above risks, the company will continue to promote changes and transformations in its business strategy, enhance its ability to resist external risks, and take the following measures: (1) On the basis of stabilizing its existing overseas market business, increase the development and introduction of high-quality domestic large customers; (2) Continuously improving the company's technological level and research and development capabilities, launching high-tech products with more competitive advantages, increasing the average number of product layers, and enhancing product added value; (3) Closely monitor the development of the China US trade dispute, actively maintain cooperative relationships with customers and suppliers, and maintain close communication and contact. (Global Market)