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The Overview of Foreign Trade of China’s Hardware Industry in 2016


5. The ratio of general trade dropped slightly, but the advantage was still obvious

From Jan. to Dec., 2016, the general trade of China’s hardware industry reached a total import and export amount of 81.518 billion US dollars, falling 10.78% year on year, and accounting for 69.71% of total foreign trade of hardware industry, a drop of 2.96 percentage points from previous year. In particular, the accumulated general export trade reached 66.529 billion US dollars, falling 13.16% year on year and accounting for 69.86% of total export amount. The accumulated general import trade reached 14.989 billion US dollars, up 1.59% year on year, accounting for 69.04% of total import volume. Although ratio of general trade dropped slightly, it is nearly 70%, so the advantage is still obvious. Enterprises with higher ratio in general trade can boost their export added-value and improve their profitability. Overall, it is conducive to optimizing the trading structure of China’s hardware industry.

Table 1-2   Export Trade of Major Hardware Products

 

Trade

Export & Import in 2015

Import & Export in 2016

Amount

(x100,000,000 USD)

YoY (%)

Ratio (%)

Amount

(x100,000,000 USD)

YoY (%)

Ratio (%)

Hardware Industry Total

1253.12

0.75

100

1169

-6.98

100

General Trade

910.57

-1.09

72.66

815.18

-10.78

69.71

Processing Trade

162.06

-1.66

12.93

155.1

-4.65

13.26

Other

75.63

61.98

6.04

97.41

28.31

8.33


 

6. The import price of hardware product is higher than the export price, and industry needs to offer products with higher added-value

Table 1-3   Import & Export Price Comparison for Hardware Products

 

Product

Multiple

Product

Multiple

Lighter

26.21

Pipeline Connector: No forgeable

5.58

Spare Parts (Saw)

16.98

Haircut Tool

5.46

Drilling Tool (with diamond)

15.22

Razor

5.37

Electric Frying Pan

12.88

Water Tap

5.25

Gas Appliance

9.21

Spare Parts (Razor)

5.14

Flashlight and Other Lighting Device

8.66

Range Hood

5.09

Pipeline Connector: Steel

8.40

Shower Room

5.02

Drilling Tool (Other materials)

7.32

Zipper

4.88

Kitchen Appliance

7.19

Aluminum Container

4.64

Nail

6.76

Spare Parts (Valve)

4.51

Tool Set

6.50

Stainless Steel Thermos Cup and Container

4.21

Gas Water Heater

6.25

Small Electric Tool

4.20

In major foreign trade of hardware products, most of the hardware product’s average import price was higher than their export price, except for several products such as massage bathtubs, plastic showers, measuring tools, drilling tools and nails, buttons. Import price of these four products---the lighter, saw parts, drilling tool with diamond and electric frying pan, was over 10 times higher than the export price, which was 26.21 times, 16.98 times, 15.22 times and 12.88 times, respectively. Such price difference encourages the hardware industry to upgrade their product and increase the added-value.

7. Industry trade is still widespread, while the traditional market is relatively stable

At present, China can produce a complete range of hardware products and many of them are the world’s No.1 in terms of production volume, which also make up a higher market share globally. According to the customs’ data, there are 11 product categories in hardware, with 241 Tax File Numbers. Hardware products are exported to 5 continents and 230 countries and regions, including USA, India, UK, Australia, France, Japan, Brazil, Germany, Canada, Malaysia etc. There were seven regions absent from export trade list compared to the same period of 2015. Hardware products are imported from 167 countries and regions, such as Vietnam, China, South Korea, USA, Japan, France, Italy, Germany, Indonesia, Hong Kong etc. The number of import countries decreased by 26 compared to the same period of 2015, and meanwhile, there were 26 new regions added to the import trade list. The status of China's hardware production was constantly strengthening. China is moving toward to be a hardware production giant.

Table 1-4  Bilateral Trade of Hardware Product to Major Foreign Markets in 2016 

Trade

Total Trade in 2015

Total Trade in 2016

YoY(%)

Ratio(%)

YoY(%)

Ratio(%)

Hardware Industry Total

0.75

100

-6.98

100

The Belt and Road Countries

-2.23

26.76

-9.26

26.09

27 EU Nations

-3.97

22.71

-4.56

23.33

USA

8.65

20.97

-4.92

21.43

ASEAN

5.3

10.72

-11.2

10.23

Japan

-9.84

6.95

1.15

7.54

BRICS

-11.82

6.68

-11.02

6.39

In 2016, the foreign trading of hardware products to various markets encountered reduction to varying degrees. However, the bilateral trade with traditional markets such as USA and EU, only suffered a moderate decline compared to the industry average. Instead, the bilateral trade with emerging markets, such as ASEAN, BRICS and “the Belt and Road”, suffered a notable decline compared to the industry average.
 

8.  1/4 of foreign trade amount generated from “The Belt and Road” countries

 “The Belt and Road” is a strategy initiated by Chinese government. There are 64 countries along “The Belt and Road”, and most of them are emerging and developing countries. It contains the Central Asia, West Asia, Southeast Asia, South Asia, North Africa, and East Africa, with influence also present in the East Asia and Western Europe. All of these countries’ economies can strongly complement China’s development. In 2016, China's hardware products traded to the countries along “The Belt and Road” reached a total amount of 30.513 billion US dollars, accounting for 26.09% of total hardware export, falling 9.26% year on year. In particular, the total export amount reached 28.523 billion US dollars, accounting for 29.95% of total hardware export, with a decline of 10.49% year on year; the total import amount reached 19.894 billion US dollars, accounting for 9.16% of total hardware import, with a growth of 13.01% year on year.

Among the countries along “The Belt and Road”, export to Vietnam, India, the Russian Federation and Malaysia hit over 2 billion US dollars in each country, accounting for 30.92% of the total export amount to “The Belt and Road”. Afghanistan experienced the fastest growth and grew 165.39% year on year; among the importing countries along “The Belt and Road”, Thailand had the largest import amount and reached 378 million US dollars. Import amount grew 6790.06% and 3503.95% in Timor-Leste and Syria, respectively.

In 2016, the major hardware products exported to countries along “The Belt and Road" were valve, nail, window hardware accessories, water tap, lock, wire mesh, flashlight and other lighting devices, shower room and so on; and the major hardware products imported from countries along “The Belt and Road” were measuring tool, valve and nail etc.

“The Belt and Road” covers 1/3 of the world's sovereign states, with 2/3 of the world’s population being involved. Cooperation between China and those countries can promote the development of central and western China, drive industrial upgrade in eastern China, transfer the excess capacity, and improve the infrastructure across regions, finally adding a new force in the foreign trade of China’s hardware industry.

 

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04-07 March
2018 ,Cologne
05-07 March
2019, Cologne
 
LivingKitchen China
/ CIKB 2017

22-24 Oct, 2017
 
 
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