search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
EMBEDDED TECHNOLOGY FEATURE


AMERICAN STAND-OFF: HOW WILL THE US-CHINA TRADE WAR AFFECT THE GLOBAL COMPONENTS MARKET?


TARIFFS ON ALUMINIUM, STEEL AND OTHER MATERIALS


After the US government imposed trade tariff s on aluminium and steel, the Chinese government threatened to place duties on a range of US exports, including electronic components. Since the electronics supply chain is globally interconnected, this has had an impact on market stability.


THE HUAWEI BAN


On 15th May 2019, the government added Chinese technology company Huawei and its affi liated technologies to the ‘Entity List’, which imposes an export license requirement on companies included. This decision to limit component supply to Huawei is likely to have a signifi cant impact on the market, both in China and the US. Huawei is also directly involved in the building and maintenance of the 5G infrastructure across the globe. The block on Huawei, if extended across more countries, could slow down major 5G developments.


   


On July 3rd 2019, Vodafone rolled out their 5G networks, joining fellow UK operator EE. However, both companies have currently blocked Huawei phones from using the network. The Chief Executive of Vodafone has suggested they would be keen to remove the ban if the US blocks on Huawei are lifted.


WHAT DOES THE FUTURE HOLD FOR THE INDUSTRY?


With tariff s placed on a number of key materials, many electronic manufacturers are learning to adapt to this new situation by looking at a redesign of their products, determining which components will be subject to tariff s during distribution. While China has so far been an important player in the global supply chain, it is likely that companies in the US, and perhaps further afi eld, will begin to source their components elsewhere: the Huawei incident is a likely infl uence. This opens up opportunities for other countries, such as Mexico, which has been touted as a new hub for electronics design and manufacturing.


On the other hand, in recent developments, Donald Trump and Xi Jinping have stated their intention to resume talks about the current trade situation, and it looks as though tensions could ease up, which may return the supply chain to a more stable state.


Whether the US-China trade war is resolved or not, it’s essential that manufacturers fi nd suppliers who can handle the unpredictable component climate. Supply chain management should be based on accurate forecasts rather than fear. Hopefully, manufacturers will realise that it would be dangerous to stockpile components in this climate, possibly leading to shortages. Although the trade war continues to place pressure on the supply chain, it’s important that good working relationships are otherwise maintained across the globe. Being part of the supply chain requires constant communication, sharing of data and planning for all outcomes.


Rebound Electronics www.reboundeu.com


/ ELECTRONICS


ELECTRONICS | JULY/AUGUST 2019


15


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44