Electrical Equipment / Components & Telecoms

In 2022, China's foreign trade of mechanical and electrical products withstood multiple pressures, with the export scale reaching an annual high, emerging industries performing brilliantly, and the industry's foreign trade volume and quality rising steadily. Gao Shiwang, spokesman of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, predicted that although the global economic and trade situation in 2023 was still complex and severe, the internal trend of high-quality development of mechanical and electrical foreign trade remained unchanged, the growth momentum of emerging industries would continue to be released, the confidence of mechanical and electrical foreign trade enterprises in seizing orders and expanding the market would be firmer, and the innovation of cross-border e-commerce, overseas warehouse and other new business forms would also be accelerated.

Outstanding achievements in the export of new industries

According to China's customs data, China's total exports of mechanical and electrical products in 2022 reached US $2052.77 billion, breaking the US $2 trillion threshold for the first time, with a year-on-year increase of 3.6% from the high base in 2019, and an average growth rate of 15.4% in two years, accounting for 57.1% of China's total exports of goods.

In 2022, China's exports of new energy vehicles, solar cells and lithium batteries achieved year-on-year growth. According to customs data, in RMB, in 2022, new energy vehicles will drive the export of finished vehicles to maintain a high boom, driving the export of mechanical and electrical products to increase by 1.3 percentage points. The export volume of finished vehicles in the whole year increased by 56.8% and 74.7% year on year respectively. The cumulative export volume of 3.321 million vehicles (US $6016 billion) increased year on year for 27 consecutive months. According to customs data, China's export of solar cells and lithium batteries increased by 67.8% and 86.7% year on year in 2022.

"Last year, the demand for durable consumer goods decreased due to high inflation, and the export value of key traditional industries in the electromechanical field, including computers, mobile phones, household appliances, lighting equipment, and so on, declined year-on-year due to the combination of high base factors and industrial structural characteristics." Kaoshiwang said that customs data showed that in the whole year of 2022, China's cumulative export volume of mobile phones was 822 million, down 13.8% year-on-year, and the cumulative export volume of mobile phones was 142.67 billion US dollars, A year-on-year decrease of 2.5%; The cumulative export value of computers was 235.96 billion US dollars, down 7.5% year on year; According to customs data, the cumulative export value of household appliances was US $85.5 billion, down 13.3% year on year.

Successful market expansion requires multiple efforts

Since 2022, problems such as supply chain disorder, sharp fluctuations in exchange rates, and shrinking demand caused by the Ukrainian crisis, global inflation, and the US interest rate increase and contraction have brought pressure on China's electromechanical foreign trade enterprises to explore the international market. Gao Shiwang suggested that in 2023, China's electromechanical foreign trade enterprises should go abroad to explore the market. At the same time, the relevant national departments should also play an active role in supporting enterprises to actively participate in international exhibitions and help enterprises to visit customers, seize orders and expand the market.

In terms of developing international markets, Kaoshiwang believes that for mature traditional markets such as the United States and Europe, Chinese electromechanical foreign trade enterprises should strengthen customer communication and actively participate in well-known exhibitions in the industry to grab orders through business charter flights and other forms. For emerging markets, relevant national departments should give early warning on exchange rate, market and other risks for enterprises, organize Chinese brand exhibitions in order to develop key markets such as RCEP and the "the Belt and Road", forge ahead with key national markets and promote in-depth cooperation.

In the face of the increasing trade frictions in the photovoltaic industry, Koshiwang suggested that a unified carbon footprint certification system for the photovoltaic industry in China should be established as soon as possible to promote the docking and mutual recognition of domestic standards and international standards. At the same time, it should coordinate to deal with the common problems encountered in the photovoltaic industry, such as foreign supply chain review, especially the specific problems of key enterprises.

In terms of auto export, "relevant national departments should support auto enterprises to establish overseas auto finance companies, and enterprises should establish independent and controllable overseas auto finance companies through cooperation or joint venture, and provide competitive terminal financial service programs through local financing and cooperation with local banks to provide support for dealers and customers." Kaoshiwang said that special support funds for auto export could also be established, The financing can be initiated by auto export enterprises and participated by financial institutions and social parties.

In view of the problems that the industrial policies of the United States and Europe in the semiconductor industry and the use of export control and other measures restrict the development and industrial upgrading of Chinese enterprises, Koshiwang suggested that we should give full play to the supporting and scale advantages of domestic downstream industries, actively do a good job in stabilizing foreign investment, and support the application of domestic semiconductor equipment and materials in the manufacturing process and the application of domestic chips in new energy vehicles, smart appliances and other fields. In addition, we will guide semiconductor enterprises to enhance their awareness of export control compliance and strengthen the construction of internal compliance systems.

In addition, we should strengthen the role of credit insurance in promoting export trade and appropriately increase the credit line of foreign buyers on the basis of continuing to reduce premiums. At the same time, we should strengthen the timeliness management, strengthen the interpretation of overseas market risk disclosure, and regularly organize enterprises to share risk classes to provide more information support for foreign trade enterprises.

We will comprehensively improve the construction of transnational operation capacity of electromechanical enterprises. Kaoshiwang suggested that electromechanical enterprises should be guided to make full use of various free trade agreements and adjust the industrial layout according to the industrial development trend and market growth potential; Strengthen infrastructure investment in the central and western regions, improve the construction of transportation networks, establish special freight lines, and provide certain subsidies for the logistics costs of export-oriented processing and trade enterprises, attract the investment of leading enterprises, and drive the settlement of supporting enterprises in the industrial chain; We will increase subsidies for the high costs of enterprises responding to international trade friction cases.

With the improvement of the internationalization of Chinese enterprises, the brand economy is getting more and more attention. It is urgent to establish a high threshold, strict supervision and high-quality brand quality certification standard system. "Although China has CQGC (China Quality Product Certificate) And other certification systems, but they are not highly recognized at home and abroad. At present, the work of formulating energy efficiency standards for air conditioners in various countries around the world is uneven, and the cycle of energy efficiency testing and certification varies from country to country. There are still some markets that do not have energy efficiency standards for room air conditioners, and the energy efficiency of products is mainly customized by the purchaser or designed by the manufacturer. Therefore, it is suggested that the government, enterprises and industry organizations should work together to formulate energy efficiency standards for air conditioning exports, establish export energy efficiency labeling system, and improve the energy efficiency of air conditioning exports. " Gao Shiwang said.