The measures taken by the optical industry in response to the tariff adjustment by the United States

I. Supply Chain Adjustment and Diversified Layout

Transfer the production base

Case: Chinese optical enterprises have accelerated the establishment of production bases in Southeast Asia (such as Vietnam and Thailand), and the production capacity of some high-end optical components (such as laser lenses and lens modules) is gradually being transferred overseas. For instance, a certain optical enterprise successfully evaded the tariffs imposed by the United States on products of Chinese origin by establishing a factory in Vietnam. At the same time, it took advantage of the local labor cost to reduce the overall cost.

Data support: According to industry research, the proportion of optical component production capacity in Southeast Asia in the global market is expected to increase to 15% by 2025, an increase of 8 percentage points compared with 2020.

Regional supply chain integration

Strategy: The enterprise reduces its reliance on raw materials from the United States by establishing regional cooperation networks with optical material suppliers in Japan, South Korea, etc. For instance, a certain enterprise shifted the procurement of optical glass raw materials to Japan and simultaneously utilized South Korea's precision processing technology to enhance the added value of its products.

Effect: Supply chain diversification has enhanced the flexibility of enterprises in dealing with tariff risks by more than 30%.

Ii. Product Upgrading and Market Structure Optimization

Technological breakthroughs and high-end transformation

Direction: Focus on the research and development of high-precision optical components (such as AR/VR optical modules, liDAR lenses) to enhance the technical barriers of products. For instance, a certain enterprise successfully entered the supply chains of Tesla, Apple and others by conquering the free-form surface optical design technology, and its tariff sensitivity was reduced.

Data: The global AR/VR optical module market size is expected to reach 12 billion US dollars in 2025, and the proportion of Chinese enterprises is expected to increase from 15% in 2020 to 25%.

Diversified layout of the market

Strategy: Deeply cultivate the markets of Europe, ASEAN and the "Belt and Road Initiative", and reduce reliance on the US market. For instance, a certain enterprise has set up a research and development center in India to develop low-cost optical solutions for the local market. By 2024, the revenue share of the Indian market had increased to 18%.

Case: In the first quarter of 2025, China's optical component exports to ASEAN increased by 22% year-on-year, offsetting the impact of the decline in the US market.

Iii. Cost Optimization and Efficiency Enhancement

Lean production and automation transformation

Measures: Introduce intelligent detection equipment and automated production lines to reduce the proportion of labor costs. For instance, a certain enterprise has increased the yield rate of optical components from 92% to 98% and reduced the production cost per piece by 15% by deploying an AI visual inspection system.

Industry trend: The penetration rate of automated equipment in the optical industry is expected to reach 65% by 2025, an increase of 20 percentage points compared to 2020.

Supply Chain Finance and Exchange Rate Management

Tools: Utilize cross-border RMB settlement, forward foreign exchange contracts and other tools to hedge against the risk of exchange rate fluctuations. For instance, a certain enterprise, through cooperation with financial institutions, reduced the proportion of US dollar settlement from 60% to 30%, resulting in a reduction of 20 million yuan in exchange losses in 2024.

Iv. Policy Coordination and International Cooperation

Take advantage of policy dividends

Measures: Apply for subsidies for China's "Specialized, Refined, Distinctive and Innovative" enterprises and participate in the National Key Research and Development Program. For instance, a certain enterprise has obtained research and development fund support by undertaking the "Localization of High-Precision Optical Components" project, thereby accelerating the breakthrough of key technologies.

Data: The total amount of policy subsidies for the optical industry is expected to reach 5 billion yuan in 2025, covering over 300 enterprises.

International standard setting and rule competition

Strategy: Unite economies such as the European Union and Japan to promote the formulation of international standards in the optical industry. For instance, the proportion of proposals by Chinese enterprises in ISO/TC172 (Technical Committee on Optics and Photonics) has increased to 18%, enhancing their say in the rules.

V. Risk Early Warning and Dynamic Response Mechanism

Establish a tariff database

Tool: Develop a real-time monitoring system to track the adjustments of the US tariff list, anti-dumping investigations and other dynamics. For instance, a certain enterprise predicted changes in tariff policies through AI algorithms and adjusted its procurement plan three months in advance, thus avoiding losses of over 50 million yuan.

Legal compliance and trade remedies

Action: Utilize the WTO dispute settlement mechanism to file a lawsuit against the unfair tariff measures of the United States. For instance, the Chinese optical industry consortium has submitted a consultation request to the WTO regarding the additional tariffs imposed by the United States under Section 301 to safeguard the industry's rights and interests.