Chinese display makers have been aggressively increasing production capacity and expanding market share in recent years, raising concerns in the United States about dependence on China. Displays are a critical component not only in the civilian sector but also in military technology, and tensions in this market could pose a threat to US national security.
The cause for concern was the report “Displays are the New Batteries,” published by American China-related security researcher Joe McReynolds. He noted that displays are becoming an increasingly important component of computerized military equipment, from fighter jets to augmented reality systems that allow digital information to be superimposed on a real image on the battlefield.
Beijing’s subsidies for its own display manufacturers could force their competitors out of the market, leaving the US dependent on China. As a result, the Chinese display industry may become a new target for US sanctions.
Subsidies for Chinese display manufacturers include cheap loans, tax breaks and rebates for land purchases – they can cover 50% to 70% of the costs associated with display factories. Beijing has made significant efforts to support an industry that is beginning to surpass South Korea’s, which has long dominated the global market. In June 2022, Samsung Display stopped producing LCD screens completely, and LG Display stopped producing LCD TVs in South Korea at the end of the same year.
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