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Samsung and LG Plan to Close Their LCD TV Factories in China

Well-known Chinese news site Sina recently reported that, according to South Korean media news, more early signs of the negative impact of the China-US trade war are emerging. Two large South Korean technology companies, Samsung and LG, are planning to close their LCD TV factories located in China, where their 40- and 50-inch LCD TV sets were manufactured for the U.S. market. The announced U.S. tariff on Chinese TVs will leave the two companies with no profit, or they may even suffer a loss. Insider sources said the two companies have almost reached final decisions on this plan. After the closures, the South Koreans will establish new factories elsewhere, such as Mexico. LG is constructing new factories in the United States too. TV sets made in China hold ten percent of the total TV output of these two companies. A Samsung official commented that, with a 25 percent tariff, there would be no way to continue production without a loss.

Source: Sina, April 16, 2018