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The position of monochrome LCDs from the Chinese mainland in the international market and the impact of tariffs on the export of LCD products

Release time:

2025-05-30

Over the past decade, mainland China's international standing in the monochrome liquid crystal display (LCD/LCM) sector has significantly improved, demonstrating strong competitiveness, particularly in niche markets and specialized technologies. Concurrently, the impact of tariff policy changes on LCD product exports exhibits complexity and phased characteristics. A detailed analysis follows:

I. Mainland China's International Market Position in Monochrome LCDs

1.  Technological Deepening and Market Share  

 Mainland Chinese enterprises have secured a significant position in the monochrome LCD market through long-term focus on specialized segments. For instance, Dalian Eastern Display Co., Ltd. has specialized in monochrome LCD panels for 35 years, developing products with ultra-wide temperature ranges and ultra-low power consumption. With a portfolio exceeding 10,000 products, it has become a globally recognized leader in monochrome LCDs. Market reports indicate that in 2023, Chinese firms ranked among the top core manufacturers globally in the monochrome LCD display market, excelling particularly in VA/TN/HTN/STN/FSTN technologies.

 

2.  Industrial Chain Support and Localization

China's new display industry chain has become increasingly mature. The localization rate of upstream raw materials (such as glass substrates and polarizers) has progressively increased, reducing supply chain risks and enhancing industrial resilience. This provides the foundation for the mass production and cost control of monochrome LCD products.

3.  Expansion of Application Scenarios  

Monochrome LCDs are widely used in industrial control, medical equipment, automotive displays, and other fields demanding high stability and reliability. Chinese companies, leveraging cost-effectiveness and technological adaptability, are gradually replacing Japanese and South Korean products in these markets. For example, Dalian Eastern Display's LCD panels are extensively used in automotive dashboards, industrial instruments, medical devices, and white goods.

II. Impact of Tariffs on LCD Product Exports

1.  Short-term Benefits from US-China Tariff Adjustments  

 In May 2025, the US and China reached a phased tariff adjustment agreement, suspending the imposition of an additional 24% tariff while maintaining a 10% base tariff. This policy reduced export costs, stimulating a short-term surge in orders. For instance, US buyers on cross-border e-commerce platforms accelerated stockpiling during the 90-day window period. Industries with significant tariff reductions, such as machinery, electronics, and consumer goods, benefited markedly. LCD products, as electronic components, also experienced export growth.

2.  Long-term Challenges and Response Strategies  

Tariff Uncertainty: The US could still constrain China's display industry through technical restrictions (e.g., Section 337 investigations) or by reinstating tariffs. For example, Corning previously accused Chinese glass substrates of patent infringement, a move aimed at curbing China's industrial chain upgrading.

Globalized Capacity Layout: To mitigate tariff risks, leading companies are accelerating overseas capacity construction. Firms like TCL and Hisense utilize factories in Mexico and Vietnam to gain tariff exemptions. Production of some LCD modules has shifted to Southeast Asia to maintain export competitiveness to the US.

3.  Assistance from Regional Trade Agreements  

The signing of the Regional Comprehensive Economic Partnership Agreement (RCEP) has reduced intra-Asian tariffs, boosting Chinese LCD exports to markets like ASEAN, Japan, and South Korea. These tariff cuts further solidify China's position in regional supply chains.

III. Future Trends and Recommendations

1.  Technological Upgrading and High Value-Added Products  

Chinese enterprises need sustained investment in R&D for new display technologies like Mini LED and Micro LED to compete against OLED in the mid-to-high-end market. For instance, TCL CSOT is pioneering a differentiated path with printed OLED technology, while BOE is deploying high-generation OLED production lines to enhance competitiveness in large-size panels.

2.  Strengthening Supply Chain Resilience  

Enhance self-sufficiency and control over key materials (e.g., photomasks, glass substrates) to reduce external dependence. Capacity expansions by companies like Qingyi Photomask and Shanjin Optoelectronics in photomasks and polarizers improve supply chain security.

3.  Diversified Market Strategy  

While consolidating markets in Europe and the US, expand into emerging markets like Latin America and Africa. Leverage policy dividends from RCEP and the Belt and Road Initiative to diversify risks.

In summary, mainland China's monochrome LCD industry has joined the global top tier through technological focus and industrial chain integration. Tariff policies offer short-term export benefits, but long-term challenges include navigating technical barriers and geopolitical risks. Through technological upgrading, globalized capacity deployment, and regional cooperation, Chinese companies are poised to continue expanding their international market share within a complex trade environment.