Electrical Equipment / Components & Telecoms

In the production workshop of a lighting company in Dongguan, the sound of machinery is constantly rumbling. Workers are busy packing, packaging and shipping batches of LED lighting fixtures produced by assembly line operations, and hurry up to complete the orders.

"After experiencing the'V'-shaped reversal in 2020, the export of lighting products continued to maintain a triumphant trend in the first half of this year. The company's export orders in the first quarter increased by more than 50% year-on-year, and an increase of 60% over the same period in 2019. ; Although the order growth in the third quarter is not as obvious as in the first half of the year, it is still in a saturated state." The person in charge of the company told the International Business Daily reporter.

Take a glimpse and see the whole leopard. Since the beginning of this year, China's exports of mechanical and electrical products have been eye-catching. Judging from the semi-annual reports disclosed by various places, the export of mechanical and electrical products has become the main force driving the growth of foreign trade.

Strong growth momentum, year-round performance can be expected

According to data released by the General Administration of Customs a few days ago, from January to July, China’s cumulative export of mechanical and electrical products was 6.88 trillion yuan, a year-on-year increase of 25.5%. Looking forward to the whole year, Gao Shiwang, director of the Industry Development Department of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said in an interview with a reporter from the International Business Daily that in view of the rapid growth in exports of mechanical and electrical products in the first half of the year, even if the growth rate in the second half of the year drops to the average level of previous years, The annual export value is still expected to achieve an increase of 15%.

From a local point of view, the export of mechanical and electrical products is growing strongly. In the first half of the year, Guangdong's export "fist products", which ranked first in foreign trade transcripts, were still mechanical and electrical products, and the proportion of exports continued to increase. Statistics show that in the first half of the year, Guangdong exported 1.59 trillion yuan of mechanical and electrical products, a year-on-year increase of 27.7%, and its share in Guangdong's total export value increased by 0.4 percentage points to 69%.

Zhejiang has achieved the second place in foreign trade import and export by virtue of high-tech electronic orders. Statistics show that in the first half of the year, Zhejiang’s exports of mechanical and electrical products increased by 3.2%, 0.4 percentage points ahead of the province’s export growth rate, and its export share rose to 42.4%, contributing 47.6% of the province’s export growth. Among them, high-tech products are leading the country by a large margin with an export growth rate of 8.2%.

Hunan also has a sudden rise in the export of high-tech mechanical and electrical products. From January to July, Hunan exported 95.83 billion yuan of mechanical and electrical products, accounting for 45% of the province's total export value during the same period. Among them, the export of electronic components and electrical equipment grew rapidly, and the export of high-tech products was 27.36 billion yuan, a year-on-year increase of 28.5%.

Located in the western region of Sichuan Province, the electromechanical industry has developed rapidly in recent years, and electromechanical products occupy a leading position in Sichuan's export products. In the first half of the year, Sichuan exported 205.81 billion yuan of mechanical and electrical products, a year-on-year increase of 19.9%, accounting for 86.5% of Sichuan’s total foreign trade exports during the same period. Among them, the export of notebook computers was 56.68 billion yuan, an increase of 22.5%; the export of integrated circuits was 46.4 billion yuan, a decrease of 1.9%; the export of tablet computers was 36.18 billion yuan, an increase of 14.2%.

Gao Shiwang said that in the context of repeated global new crown pneumonia epidemics, China's electromechanical industry's capacity scale advantages and supply efficiency advantages have shown obvious resilience and vitality, and its status as a major exporter of electromechanical production has been consolidated, ensuring that China's foreign trade as a whole is still in an important window period. . Although the current raw materials, shipping, exchange rate and other factors still plague the main body of foreign trade enterprises, the international demand of key electromechanical industries such as computers, mobile phones, semiconductors, automobiles, home appliances, photovoltaics, etc. is expected to generally increase. The continued growth of exports provided support.

Increasing challenges, alleviating difficulties for enterprises

The second half of the year is the peak season for exports of mechanical and electrical products. However, Gao Shiwang said frankly that issues such as capacity and material prices will become more prominent. Export companies face the dilemma of losing money if they do not make adjustments in time, and the dilemma of offending and breaking the trust of customers in general adjustments. For large, small and micro enterprises, the impact is even more prominent.

Gao Shiwang, for example, in the electronic audio-visual industry, according to rough estimates by companies, the recent price of raw materials has doubled year-on-year, and international ocean freight has tripled. Coupled with the rapid appreciation of the renminbi, the overall cost of the company has increased by 1/3 to 1/2. In the low-voltage electrical appliance industry, the export of enterprises is generally based on foundry. Although the orders on hand are increasing than before, the increase in material costs and the tight logistics have caused the company's operating costs to rise sharply, although the company has generally increased product prices by 10% to 15% However, the growth rate and amplitude of raw materials such as copper, iron, silver, and plastics exceeds the price adjustment of products, and the company is still in a state of loss.

As for how to deal with crises and challenges, Gao Shiwang suggested that, on the one hand, we should give play to the role of industry organizations to stabilize the business environment. Follow up and study the international development trends and market trends of key industries, establish an international market risk monitoring and early warning mechanism, build a working mechanism with government authorities, chambers of commerce, and major enterprises as the main body, and strengthen information on technical trade measures, country market risks, and foreign credit risks Sharing and risk response.

On the other hand, we should guide the optimization of production capacity and promote the innovation and development of the industry. While supporting main enterprises and sub-sectors with obvious advantages in optimizing the layout of international production capacity, supporting the coordinated implementation of small and medium-sized enterprises supporting the supply chain of the industrial chain, especially in the ASEAN region; at the same time, accelerating Chinese product standards, certification, and laboratories Such as the standard system "going out", focusing on the overseas construction of industry standards, especially strengthening the standards of original and innovative products "going out".