Trade Friction Getting More Intense, And Home Appliances Export Facing Severe Situation

The data released by Ministry of Industry and Information Technology on 20th shows

that in 2009 the accumulative solar water heater export total of China's home appliance industry is 31.324 billion U.S. dollars, and the total UV lamp imports is 2.804 billion, each declined by 13.27% and 12.08% year on year. And the cumulative trade surplus is 28.52 billion U.S. dollars, 43.96 billion less than previous year. Experts Tattoo Machine conclude that China's home appliances trade of this year is hardly optimistic home appliances and the trade friction will be intensified.

Statistics show that the total exports of China's home appliance industry in 2009 decreased 4.79 billion U.S. dollars year on year. The drop rate increases 26.9 percentage points, and compare with the first half of the year the rate has reducing 7.6 percentage points. And the 35% of the reduction is due to the decrease in air conditioner export.

Since the second half of last year, the export reduction rate of major products has all narrowed. Fang Xuan from China Light Industry Information Center told Xinhua News that there are four reasons caused the negative growth of the whole year export in household appliances of 2009: the world economic recovery is a long process and the international market consumption is still weak; the financing environment of SMEs could not fully improved and the trade risk is still high; the trend of trade protection is increasingly severe and the difficult in opening markets become marked; the bargaining power of exports would be weaken when facing competitive devaluation of national currencies under financial crisis.

According to sectional statistics, in 2009 China's household appliances have experienced total 8 cases of trade friction. Lu Renbo, the Deputy Secretary-General in China Electronic Chamber of Commerce, said that the trade frictions are not only limited to anti-dumping lawsuits, but also including technical barriers. The all-around trend shows that the trade friction in home appliances export will be intensified harder.

Mr. Lu Renbo said that China issued series policies in 2009 to support domestic home appliance industry, including home appliances into countryside, old to new, and energy efficiency subsidies. And the following good situation of domestic sales offset the reductive export effect on home appliances enterprises to some extent. In the long term, the foreign trade exports market is still very important to Chinese home appliances business. Therefore, Chinese home appliance manufacturers have to adjust the industrial structure, and increase the technological level to avoid cruel competition in low cost.

Ms. Fu Juan, the senior analyst in appliance industry, commented that as a sophisticated manufacturing center of global appliance the influence would not be too obvious to China, although the export trade friction will be intense. Furthermore, most home appliances are exported as OEM, so the trade friction will not cause a substantial decline in export growth.

China local appliance industry should be thinking about how to transfer product exports to brand exports in order to obtaining a higher value.

Ms. Fu Juan also remind us that in 2010 the pressure of dollar depreciation and RMB appreciation still exist which means that the cost of China home appliance exports will increase, and it might even cause the order outflow to other countries and regions, such as Southeast Asia. Thereby we need to get ready for the situation in advance.

Above provided by SelectChina.com, and find more information on China Consumer Electronics Manufacturers / China Consumer Electronics Products.

by:Deland Selectchina

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