The China government plans to raise import tariffs for LCD panels by 3-5% in the second quarter of 2012 in order to safeguard the development of the domestic flat panel industry, according to industry sources.

While acknowledging the speculation, most Taiwan-based panel makers stated that they have not heard any official announcement from the China government and expect the new tariff policy to become more clear in May.

If the new tariffs are realized, China-based flat panel makers BOE Technology and China Star Optoelectronics Technology (CSOT) will benefit from the adjustment as the two companies are ready to ramp up their output this year, the sources commented.

The possibility is high for the China government to raise tariffs for LCD panels at a time when its 8.5G lines begin volume production and domestic 10G lines have gradually been established, Jason Hsuan, chairman of TPV Technology, said earlier.