New Economic Analysis Refutes Claims of Chinese Dominance in Display Industry

WASHINGTON, July 29, 2025 /PRNewswire/ -- A new economic study by NERA challenges recent claims that display panel manufacturers from mainland China dominate the global display industry or pose a threat to U.S. market competition and supply chain security. The report — Economic Analysis of Dominance Claims in the Display Industry — was authored by Dr. Christian M. Dippon and responds directly to allegations made by Pamir Consulting, LLC in its November 2024 report titled Displays are the New Batteries, China's Growing Dominance of the Global Display Market and its Implications for Our Economy and National Security.

The full report can be found at https://sitrickandco.medium.com/economic-analysis-of-dominance-claims-in-the-display-industry-1aaa7573894c.

Pamir Consulting alleged that Chinese firms including BOE Technology Group, TCL, Tianma, and Visionox have established a dominant position in the global display market and recommended various restrictions, including tariffs, reshoring incentives, and limits on access to U.S. capital and technology. NERA's study evaluates whether these dominance claims align with market evidence and economic principles, concluding they lack substantiation.

NERA's analysis evaluated the structure of the global display industry and identified a competitive landscape, with manufacturers operating across multiple countries, including South Korea, Japan, Vietnam, and the United States. Firms invest heavily in research, development, and production capabilities. The industry's technological progress — reflected in innovations such as OLED and foldable displays — has led to broader product availability, improved quality, and falling prices, trends that are typical in competitive markets.

From an antitrust perspective, the report finds that manufacturers from mainland China are subject to strong competitive constraints. They compete not only with non-Chinese firms but also with each other. This internal and external competition limits any individual firm's ability to raise prices or control output. Economic dominance, in the antitrust sense, requires the ability to sustain pricing above competitive levels over time, which the report finds is not occurring in this market.

On the supply chain side, the study also finds no credible evidence that manufacturers from mainland China can disrupt access to display panels in the United States. Alternative suppliers exist across regions, and many are actively expanding capacity. Government incentives in countries such as South Korea, Vietnam, India, Japan, and the U.S. have encouraged the development of new manufacturing sites, reducing dependency on any single country. The report highlights recent investments in display fabs outside mainland China — including new projects in the U.S. and India — as further evidence of the industry's flexibility and global scope.

The report also evaluates the Pamir report's argument that state subsidies granted to Chinese display manufacturers have distorted the market. While acknowledging the presence of subsidies, NERA's analysis notes that many other governments — including those in the U.S., South Korea, Japan, and India — also provide subsidies to encourage domestic production. The existence of subsidies across the board makes it difficult to isolate their competitive effect, and the Pamir report does not provide an economic analysis to support its conclusions.

NERA's findings also address concerns about national security. While the Pamir report suggests that Chinese manufacturers could pose risks to the U.S. military display supply chain, the NERA study shows that other companies — both domestic and international — already supply advanced display technologies, such as Micro OLEDs and Micro LEDs, for military applications. The military represents only a small fraction of global display demand, further limiting the potential impact of restricting Chinese firms.

In conclusion, the report finds no economic evidence to support the dominance claims made by Pamir Consulting. The global display industry remains dynamic and highly competitive, with firms across the world actively investing, innovating, and expanding.

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SOURCE NERA