12/18
The global connector giant Amphenol Inc. accused Luxshare Precision Products of infringing its patent rights and requested the US International Trade Commission to initiate a 337 investigation and issue a limited exclusion order and a prohibition order.
1/21
The US International Trade Commission approved the Amphenol Group’s application and initiated a 337 investigation against Luxshare Precision.
1/24
The Chinese company involved, Luxshare Precision issued an announcement in response, stating that it has received two notices issued by the US International Trade Commission on this case and has hired a US lawyer to actively respond.
1/26
The Ministry of Industry and Information Technology expressed its high concern about this case at a press conference. And will guide companies to strengthen their response.
1/28
Luxshare Precision's stock price fluctuated downward. It closed at 50.35 yuan per share on January 28, down 6.40%. The company's market value has fallen from a high of 400 billion yuan to nearly 350 billion yuan.
Many people will confuse the Section 301 investigation with the “first shot” of the 2017 US trade war with China. In fact, there is a big difference between the two.
301 is generally initiated by the US government. The forms of implementation of the terms include: claim, tariff increase, and cancellation of preferences. Products can still be sold in the U.S. market after paying fines and paying taxes.
377 investigations can be initiated by companies. After the absence or the verdict loses, it may be implemented: a limited exclusion order, a general exclusion order or a restraining order. During the validity period of the statute, products cannot enter the United States, and products that have entered cannot be sold again.
In the 337 investigation, once the processing result is "general exclusion", the company's products will be excluded from the US and even the global market. Its strength and scope have given the 337 investigation the title of US Trade Protection Atomic Bomb.
Under the "atom bomb", the world's biggest victims are Chinese companies. The data shows that in the concluded "337" investigation-related cases, the loss rate of Chinese companies reached 60%, which is much higher than the world average of 26%.
If Lixun loses the lawsuit, it will be based on the limited exclusion order and prohibition order advocated by Amphenol. All Luxshare products involved in the case will not be able to pass the US Customs, and the inventory that has passed the customs will not be sold.
Some analysts believe that Amphenol initiated the 337 investigation against Luxshare Precision mainly because the high-speed communications connectors exported by Luxshare Precision to the United States touched Amphenol’s cake. According to Tajian research data, Luxshare Precision's revenue growth rate has remained high (about 60%) in the past ten quarters, while Amphenol's growth rate has been low (about 10%) and continued to decline.
And both are both Apple's connector suppliers.
With the continuous improvement of social intelligence, society has become more dependent on the performance of electronic technology and electronic components. Mastering more advanced electronic technology can grasp the priority of development.
The world's most complete industrial chain has also given China an almost 100% self-sufficiency rate in the field of electronic components. For this reason, even if the connectors produced in my country are mainly low-end and middle-end connectors, there is still no lack of competition for high-end connectors from China.
With the rapid rise of China's high-end connector companies, the strength of global connector manufacturers has begun to undergo subtle changes. In the future, more Chinese figures will appear among the world's top ten connector manufacturers.
At the same time, we realize that under the background of Sino-US technological friction, anything can happen when Chinese companies enter the international mainstream market competition. Not only Luxshare, but Huawei, ZTE, HTC, Changhong, Nanfu and other companies have all experienced 337 investigations.
In response to such investigations, apart from being innocent and improving the intellectual property protection system. We must also take a long-term view, actively respond to the suit, and seek reasonable help from the state and industry associations.
Whether in business or because of possible trade friction considerations. The friction between Chinese and American companies will never decrease. In the turbulent future, the core way for enterprises to break the situation is still to actively expand the high-tech field and occupy the market with technology.
We believe that under the huge hotbed of the Chinese market, as long as the two cornerstones of innovation strategy and innovative technology are laid, and the three major advantages of my country's strong manufacturing capacity, huge demand market, and strong capital strength, they will surely accumulate on the road of innovation. , Take the lead again.
