Electrical Equipment / Components & Telecoms

According to statistics from the General Administration of Customs, in the first three quarters, China’s exports of mechanical and electrical products were US$1.41 trillion, a year-on-year increase of 33.3% (33.3% from the same period in 2019); imports were US$837.54 billion, a year-on-year increase of 24.6% (26.3% from the same period in 2019) ; A cumulative trade surplus of 574.9 billion U.S. dollars, higher than the total merchandise trade surplus of 427.53 billion U.S. dollars.

Export

In September, driven by the export of electronic information products, especially mobile phones, China’s export of electromechanical products was US$180.24 billion, a record monthly export value, a year-on-year increase of 26% (40.1% from the same period in 2019), continuing from June 2020 The year-on-year growth momentum since then, and has achieved double-digit year-on-year growth for 15 consecutive months.

In the month of September, the export value of major electromechanical industries generally increased. Among them, affected by the launch of new mobile phone brands such as Apple and the low base in the same period last year, the decline in the number of mobile phone exports in the month narrowed by 16.7 percentage points from the previous month, down 8.2% year-on-year, and the fifth consecutive month of negative growth. However, due to the increase in average prices, mobile phones The export value reversed the continuous decline in July and August. The export value of the month increased by 70% year-on-year, setting a new high for this year's export value.

import

In September, China imported 103.52 billion U.S. dollars of mechanical and electrical products, an increase of 6.9% year-on-year (a 26.7% increase over the same period in 2019). For the first time in seven consecutive months, imports exceeded 90 billion U.S. dollars. Due to the high base in the same period last year, the growth rate fell back to single digits for the first time since September last year, but it still hit a record high monthly import volume.

In September, China's integrated circuit imports increased by 12.7% year-on-year to US$41.37 billion, which drove the increase in imports of mechanical and electrical products by approximately 4.8 percentage points. In the first three quarters, the cumulative import of integrated circuits was US$312.61 billion, a year-on-year increase of 24.4%, and the trade deficit expanded by 20.3% year-on-year to US$203.99 billion, maintaining China’s single largest import volume.

The annual export growth rate or about 20%, the increase in volume and quality is the goal

In the case of repeated global epidemics, China's mechanical and electrical foreign trade is still in an important window period, and global demand in key industries is expected to generally increase, supporting the relatively high level of prosperity in China’s mechanical and electrical enterprises’ production and exports. High growth rate and the highest level in history, about 20% of the export volume growth rate will also be the highest in the past ten years.

However, the supply chain tension and supply delays or even interruptions caused by the epidemic still have uncertain effects on foreign-funded enterprises and China's mechanical and electrical foreign trade, which still accounts for a relatively high proportion of processing trade. At the same time, due to the pressure of international freight, skyrocketing raw material prices, chip shortages, exchange rate fluctuations, complex and severe external environments and domestic power cuts, short-term fluctuations in imports and exports may be inevitable. In the medium and long term, countries are paying more attention to the physical manufacturing industry, and the safety of the industrial chain has received more extensive attention. The regionalization and short-chainization of the global electromechanical industry chain value chain are intensifying, which will still pose pressure on the global industrial restructuring in the post-epidemic period.

In general, China's mechanical and electrical foreign trade is in a new stage of development with both scale and quality, technology, quality, brand, service and other comprehensive improvements in quality and efficiency. In the construction of a new domestic and international dual-cycle development pattern, it will take a higher level and more High-level integration into the international division of labor system and global value chain.