Electrical Equipment / Components & Telecoms

"The export volume of automobiles has achieved a year-on-year double-digit growth, and the export volume supported by the unit price of mobile phones has achieved a year-on-year increase..." In the first two months of this year, highlights of China's international trade in mechanical and electrical products can be found.

According to data, in the first two months of this year, China exported 682000 complete vehicles, a year-on-year increase of 43.2%; The export value was 14.02 billion US dollars, a year-on-year increase of 65.2%. China's mobile phone exports amounted to US $23.68 billion, up 2% year-on-year; The export unit price of mobile phones was 214 US dollars per unit, a year-on-year increase of 35 US dollars per unit. "The rapid development of the domestic electric new energy vehicle industry, the accelerated pace of enterprises going to sea, and the increasing competitiveness of the international trade market for new energy vehicles have driven year-on-year growth in both the volume and value of automobile exports in the first two months. In addition, since this year, the proportion of high-end mobile phone products has increased, driving the increase in their average export price, and the total amount of exports has also achieved growth." said Gao Shiwang, a spokesman for the China Chamber of Commerce for the Import and Export of Mechanical and Electrical Products.

Although the international market demand in 2023 was poor, in the first two months, China's automobile and mobile phone exports still achieved year-on-year growth. Gao Shiwang said, "Currently, China's electromechanical foreign trade as a whole is in a new stage of development that combines scale and quality, comprehensively improving quality and efficiency in technology, quality, brand, service, and other industries. The development of new energy vehicles, photovoltaic, lithium battery, and other industries is in line with the international standards or even leading. In the future, the demand for emerging industries will be further released, which will become an important support for the growth of electromechanical product exports."

In the face of opportunities, how should relevant national departments assist electromechanical enterprises in expanding overseas business? Gao Shiwang made the following suggestions.

On the one hand, it is necessary to improve management norms in emerging industries and promote healthy competition in the industry. The export volume and value of emerging products such as lithium batteries, electric new energy vehicles, and photovoltaic have all increased, becoming a new growth point driving the export of electromechanical international trade. However, at the same time, some countries have introduced many uncertainties in the international trade and investment of related industries through laws in the fields of supply chain traceability, carbon footprint, ESG information disclosure, and even national security. Therefore, a joint mechanism for key industries should be established to timely warn and respond to the international policy environment. At the same time, Kaoshiwang suggested that the Chamber of Commerce for International Trade, Import and Export should be supported to promote self-discipline and collaboration in the industry and actively participate in the formulation of international standards; Establish and improve a standardized, professional, impartial, scientific, and authoritative overseas competition coordination mechanism and international trade market management mechanism for key industries; Promote the combination of advantageous enterprises, cross-border mergers and acquisitions, and foreign investment cooperation, and achieve a global allocation of factor resources and layout of market networks for enterprises with transnational business capabilities.

On the other hand, it is necessary to strengthen government enterprise communication aimed at key markets. "The political and economic stability of key trading partner countries and regions for mechanical and electrical products is significant, but the trade and industrial policies of some countries are clearly counter globalized, attracting localized investment by enterprises through various ways such as imposing tariffs and conducting trade remedy investigations. In addition, measures and reasons such as abusing export controls, economic sanctions, and national security have uncertain effects on international trade and investment of enterprises. Therefore, diplomatic, commercial "A key market government enterprise communication mechanism composed of cross departments such as finance responds to the concerns of enterprises and solves common problems." Gao Shiwang said.

In addition, we should continue to increase financial support for the complete set industry. The debt crisis in some countries has been compounded by the impact of the epidemic. Since 2019, the international engineering market has been continuously depressed, with effective demand declining. Some developing countries have experienced a sovereign debt crisis, and a large number of newly signed projects in China's complete set enterprises have faced difficulties in implementing financing. Gao Shiwang suggested that financial and insurance institutions should be guided to implement differentiated management of the financing needs of packaged projects, appropriately relax the underwriting and lending country limits for projects with good economic benefits and guaranteed repayment ability, continue to promote international settlement of RMB, and actively promote third-party market cooperation.