Targeting two of China's industries, is the United States preparing to impose severe measures on products manufactured using polysilicon? According to four informed sources cited by Reuters on August 6, the Trump administration is expected to announce as early as August 6 a 15% tariff on products made from polysilicon—polysilicon itself, wafers, cells, and modules (i.e., solar panels)—along with establishing a series of minimum import prices. Polysilicon is an ultra-high-purity silicon material situated at the upstream end of both semiconductor and solar manufacturing supply chains.
Evidently, this move by the U.S. serves at least two purposes: first, to strike China’s polysilicon industry chain, particularly targeting China’s semiconductor and new energy manufacturing sectors; second, to support the development of domestic polysilicon production within the U.S.—in essence, part of America’s broader effort to reindustrialize. This also indicates that the U.S. will likely implement more containment strategies aimed at China’s competitive industries across technology and manufacturing domains. Chinese enterprises in relevant sectors need to prepare thoroughly and develop robust response strategies in advance.
These actions clearly represent another violation of the China-U.S. truce agreement, signaling the U.S.’s intent to reignite a tech trade war between the two nations. Although China announced four countermeasures against the U.S. on August 5, these may not be sufficient to deter further provocations. We must therefore prepare for a prolonged confrontation and continued counteractions. Given the U.S.’s track record, it is unlikely to back down easily. What the U.S. truly fears most is China’s control over rare earth exports.
Original article: toutiao.com/article/1872733137549321/
Disclaimer: The views expressed in this article are those of the author alone.