“The foreign trade has grown rapidly, the structure has been further optimized, and the import and export trade have basically achieved a balance.†This is a brief description of China’s machinery industry’s foreign trade situation by authorities of the China Federation of Machinery Industry. According to the prediction of relevant departments of the China Machinery Industry Federation, the total import and export volume of the machinery industry in 2006 will exceed US$270 billion and exports will reach US$135 billion. The authoritative source stated that at present and for some time to come, China’s machinery industry must strive to improve the quality and efficiency of export growth, promote stable and balanced development of foreign trade, and transform the growth pattern of foreign trade.
The reason for the sharp drop in deficit
According to statistics, in the first 10 months of this year, the total import and export volume of China's machinery products was 231.707 billion U.S. dollars, a year-on-year increase of 28.42%, which exceeded the total value of imports and exports in 2005 (22.268 billion U.S. dollars). Among them, exports were US$115.787 billion, up 36.80%, and imports were US$115.920 billion, up 21.02%. The deficit in foreign trade has shrunk drastically, at only US$133 million, a reduction of 99.04%. These data show that the significant reduction in the trade deficit is mainly due to the fact that the growth in exports far exceeds the increase in imports.
In 2006, the foreign trade of China's machinery industry showed the following characteristics: First, the structure of export products was further optimized, and the export of high-end products and high value-added products increased; second, the growth of general trade exports continued to grow faster than processing trade; and third, foreign-invested enterprises and private enterprises. Enterprises have become the major driving force for export growth; Fourth, the coastal areas have prominent regional advantages and become the main areas for export growth; Fifth, while traditional bulk commodity exports have maintained rapid growth, emerging export products have enjoyed a good development.
According to analysis, the world economy and trade have maintained rapid growth. The relative devaluation of the renminbi against major currencies other than the U.S. dollar has not only increased the demand for China’s machinery products in the international market, but also increased the competitiveness of China’s machinery products in the international market. From the beginning of the year, the exchange rate of the dollar against the euro has dropped by 10.7%, and the US dollar has also fallen against the pound, the yen, the Swiss franc and other currencies. Thus, although the renminbi has appreciated against the US dollar, the ratio with other trading partner currencies has fallen.
It is worth mentioning that the changes in the domestic machinery industry enterprises to adapt to the market environment have also clearly increased. Such as construction machinery enterprises, due to the slowdown in the growth of the domestic market in 2004 and 2005, many companies quickly turned their sights to the international market, adjusted their product mix, strengthened their marketing efforts in the foreign market, and actively expanded exports, turning the past large deficit into a surplus.
Foreign trade in the machinery industry was once one of the largest deficit households in the country's foreign trade. The deficits in 2003 and 2004 were as high as 31.384 billion U.S. dollars and 36.57 billion U.S. dollars, respectively. The reason for the continuous shrinking trade deficit is that, in addition to the aforementioned domestic and foreign factors that have driven China’s machinery industry products this year, from a deeper level, there are also the following factors. (1) A large number of production capabilities with extremely competitive prices have been formed. In recent years, the fixed assets of the machinery industry have grown rapidly, and a large number of production capacities aiming at the international market have been formed; China's taxation and labor force constitute a low-cost, cost-effective competitive advantage. (2) The rapid expansion of production capacity and the rapid increase in the technical level of many mechanical products have not only reduced imports but also led to a large number of international markets. Such as construction machinery products, the amount of imports in 2004 decreased by 2.74% year-on-year, minus 11.7% in 2005, while the amount of exports in 2004 increased by 74.6% year-on-year, an increase of 62.0% in 2005, from January to September this year, a year-on-year increase of 67.94%. There are similar situations in automobiles, parts and components, and power generation equipment. (3) China's accession to the WTO has created a good external environment for the rapid development of the export of machinery products. (4) With the reform of the system, the right to operate foreign trade has been gradually liberalized. More and more private and joint-stock enterprises have obtained the right to export and bring new vitality to the export of mechanical products.
There is still room for expansion of exports
Statistics show that although foreign trade has developed greatly, domestic demand is still the main driving force for the growth of the machinery industry. In the machinery industry sales from January to October of 2006, the international market accounted for 16.39%. Compared with the export proportion of the international market for mechanical products in Western industrial countries, which accounted for 40% to 70%, the export proportion of China’s machinery products was not high. Expand space.
The relevant experts from the China Federation of Machinery Industry stated that the machinery industry should have made great progress. Expanding the import of foreign advanced technology and equipment is not necessary as long as it is beneficial to the progress of the country's technology and contributes to the improvement of the level of the machinery industry. of. Expanding exports can train the team and improve the level. The industrial countries of the world are all trying to expand the export of machinery products. China is no exception.
On September 14 this year, the Ministry of Finance, the Ministry of Commerce, the National Development and Reform Commission, the General Administration of Customs, and the State Administration of Taxation jointly issued notices to adjust the export tax rebate rate for some commodities. Industry insiders believe that the New Tax Policy on Export Rebates, which optimizes the industrial structure and promotes the transformation of the growth mode of foreign trade, will help increase the level and processing depth of export machinery products and help improve the international competitiveness of Chinese machinery enterprises' export products. First, the export tax rebate rate for a large number of mechanical products has been raised from the current 13% to 17%, an increase of 4 percentage points, and an increase of 30.77%. This is not a decimal point. It will reduce the export costs of these products and provide a good environment for expanding exports. Second, the tax rebate policy is to restrict the export of high-pollution, high-energy-consumption, and resource-based products, reduce or eliminate the tax rebate rate of some products, and promote the upgrading of related products. For example, the cancellation of the tax rebate for lead-acid batteries has prompted the development of related companies. A new generation of colloidal lead-zinc batteries. Third, the shortage of some raw materials to reduce the export tax rebate rate will help ease the tension in this part of the material supply. Suppressing market prices will help reduce the production costs of machinery-related products. Overall, it is conducive to foreign trade and export of the machinery industry. It should make full use of this new policy to expand exports.
China Machinery Industry Federation predicts that in 2007 China's machinery industry will continue to maintain a large-scale foreign trade pattern. The annual growth rate of imports and exports exceeded 25%. Although the import growth rate accelerated, the import and export trade can still be basically balanced.
Maintain a big pattern
The basic pattern of the "great progress" of the machinery industry has been formed. Industry experts believe that to maintain the healthy development of this pattern, we must do the following:
First, establish and improve the early warning mechanism for export of important mechanical products, promote the upgrading of processing trade, and improve the quality of imports. Strengthen the monitoring of the export volume, amount, and price of important commodities and major markets, guide export enterprises to reasonably adjust the pace of export growth, avoid excessive price competition, avoid disruption, and reduce trade frictions; actively implement prohibited categories of processing trade and restricted categories Improve the quality and efficiency of export trade, actively develop exports of high value-added products and complete sets of equipment, and strive to reduce the export of products with high energy consumption, high pollution, and high resource levels; and follow the “Several Opinions of the State Council on Accelerating the Rejuvenation of Equipment Manufacturing Industryâ€. It is required to encourage the import of advanced technologies, advanced equipment, and key components and parts; the "Prohibited and Restricted Import of Major Technical Equipment and Major Industrial Technology Catalogue" is issued as soon as possible so as to prevent unreasonable repeated introduction of imports.
The second is to accelerate the transformation of the growth mode of foreign trade in the machinery industry. Focusing on independent brands and independent intellectual property rights, we will actively increase our export competitiveness. Under the unified leadership of the Ministry of Commerce, we will increase the efforts to establish and improve our own branded export products to support the research, development, display, and promotion of branded export products. Structural adjustment policies encourage independent high-tech products, complete sets of equipment and high value-added goods exports.
The third is to create a good trading environment and properly handle trade frictions. Specialized agencies are designated to conduct in-depth studies on the new features and development trends of international trade friction, improve response mechanisms, improve the ability to respond to trade frictions, and actively respond to foreign trade frictions on China's exports of mechanical products.
The reason for the sharp drop in deficit
According to statistics, in the first 10 months of this year, the total import and export volume of China's machinery products was 231.707 billion U.S. dollars, a year-on-year increase of 28.42%, which exceeded the total value of imports and exports in 2005 (22.268 billion U.S. dollars). Among them, exports were US$115.787 billion, up 36.80%, and imports were US$115.920 billion, up 21.02%. The deficit in foreign trade has shrunk drastically, at only US$133 million, a reduction of 99.04%. These data show that the significant reduction in the trade deficit is mainly due to the fact that the growth in exports far exceeds the increase in imports.
In 2006, the foreign trade of China's machinery industry showed the following characteristics: First, the structure of export products was further optimized, and the export of high-end products and high value-added products increased; second, the growth of general trade exports continued to grow faster than processing trade; and third, foreign-invested enterprises and private enterprises. Enterprises have become the major driving force for export growth; Fourth, the coastal areas have prominent regional advantages and become the main areas for export growth; Fifth, while traditional bulk commodity exports have maintained rapid growth, emerging export products have enjoyed a good development.
According to analysis, the world economy and trade have maintained rapid growth. The relative devaluation of the renminbi against major currencies other than the U.S. dollar has not only increased the demand for China’s machinery products in the international market, but also increased the competitiveness of China’s machinery products in the international market. From the beginning of the year, the exchange rate of the dollar against the euro has dropped by 10.7%, and the US dollar has also fallen against the pound, the yen, the Swiss franc and other currencies. Thus, although the renminbi has appreciated against the US dollar, the ratio with other trading partner currencies has fallen.
It is worth mentioning that the changes in the domestic machinery industry enterprises to adapt to the market environment have also clearly increased. Such as construction machinery enterprises, due to the slowdown in the growth of the domestic market in 2004 and 2005, many companies quickly turned their sights to the international market, adjusted their product mix, strengthened their marketing efforts in the foreign market, and actively expanded exports, turning the past large deficit into a surplus.
Foreign trade in the machinery industry was once one of the largest deficit households in the country's foreign trade. The deficits in 2003 and 2004 were as high as 31.384 billion U.S. dollars and 36.57 billion U.S. dollars, respectively. The reason for the continuous shrinking trade deficit is that, in addition to the aforementioned domestic and foreign factors that have driven China’s machinery industry products this year, from a deeper level, there are also the following factors. (1) A large number of production capabilities with extremely competitive prices have been formed. In recent years, the fixed assets of the machinery industry have grown rapidly, and a large number of production capacities aiming at the international market have been formed; China's taxation and labor force constitute a low-cost, cost-effective competitive advantage. (2) The rapid expansion of production capacity and the rapid increase in the technical level of many mechanical products have not only reduced imports but also led to a large number of international markets. Such as construction machinery products, the amount of imports in 2004 decreased by 2.74% year-on-year, minus 11.7% in 2005, while the amount of exports in 2004 increased by 74.6% year-on-year, an increase of 62.0% in 2005, from January to September this year, a year-on-year increase of 67.94%. There are similar situations in automobiles, parts and components, and power generation equipment. (3) China's accession to the WTO has created a good external environment for the rapid development of the export of machinery products. (4) With the reform of the system, the right to operate foreign trade has been gradually liberalized. More and more private and joint-stock enterprises have obtained the right to export and bring new vitality to the export of mechanical products.
There is still room for expansion of exports
Statistics show that although foreign trade has developed greatly, domestic demand is still the main driving force for the growth of the machinery industry. In the machinery industry sales from January to October of 2006, the international market accounted for 16.39%. Compared with the export proportion of the international market for mechanical products in Western industrial countries, which accounted for 40% to 70%, the export proportion of China’s machinery products was not high. Expand space.
The relevant experts from the China Federation of Machinery Industry stated that the machinery industry should have made great progress. Expanding the import of foreign advanced technology and equipment is not necessary as long as it is beneficial to the progress of the country's technology and contributes to the improvement of the level of the machinery industry. of. Expanding exports can train the team and improve the level. The industrial countries of the world are all trying to expand the export of machinery products. China is no exception.
On September 14 this year, the Ministry of Finance, the Ministry of Commerce, the National Development and Reform Commission, the General Administration of Customs, and the State Administration of Taxation jointly issued notices to adjust the export tax rebate rate for some commodities. Industry insiders believe that the New Tax Policy on Export Rebates, which optimizes the industrial structure and promotes the transformation of the growth mode of foreign trade, will help increase the level and processing depth of export machinery products and help improve the international competitiveness of Chinese machinery enterprises' export products. First, the export tax rebate rate for a large number of mechanical products has been raised from the current 13% to 17%, an increase of 4 percentage points, and an increase of 30.77%. This is not a decimal point. It will reduce the export costs of these products and provide a good environment for expanding exports. Second, the tax rebate policy is to restrict the export of high-pollution, high-energy-consumption, and resource-based products, reduce or eliminate the tax rebate rate of some products, and promote the upgrading of related products. For example, the cancellation of the tax rebate for lead-acid batteries has prompted the development of related companies. A new generation of colloidal lead-zinc batteries. Third, the shortage of some raw materials to reduce the export tax rebate rate will help ease the tension in this part of the material supply. Suppressing market prices will help reduce the production costs of machinery-related products. Overall, it is conducive to foreign trade and export of the machinery industry. It should make full use of this new policy to expand exports.
China Machinery Industry Federation predicts that in 2007 China's machinery industry will continue to maintain a large-scale foreign trade pattern. The annual growth rate of imports and exports exceeded 25%. Although the import growth rate accelerated, the import and export trade can still be basically balanced.
Maintain a big pattern
The basic pattern of the "great progress" of the machinery industry has been formed. Industry experts believe that to maintain the healthy development of this pattern, we must do the following:
First, establish and improve the early warning mechanism for export of important mechanical products, promote the upgrading of processing trade, and improve the quality of imports. Strengthen the monitoring of the export volume, amount, and price of important commodities and major markets, guide export enterprises to reasonably adjust the pace of export growth, avoid excessive price competition, avoid disruption, and reduce trade frictions; actively implement prohibited categories of processing trade and restricted categories Improve the quality and efficiency of export trade, actively develop exports of high value-added products and complete sets of equipment, and strive to reduce the export of products with high energy consumption, high pollution, and high resource levels; and follow the “Several Opinions of the State Council on Accelerating the Rejuvenation of Equipment Manufacturing Industryâ€. It is required to encourage the import of advanced technologies, advanced equipment, and key components and parts; the "Prohibited and Restricted Import of Major Technical Equipment and Major Industrial Technology Catalogue" is issued as soon as possible so as to prevent unreasonable repeated introduction of imports.
The second is to accelerate the transformation of the growth mode of foreign trade in the machinery industry. Focusing on independent brands and independent intellectual property rights, we will actively increase our export competitiveness. Under the unified leadership of the Ministry of Commerce, we will increase the efforts to establish and improve our own branded export products to support the research, development, display, and promotion of branded export products. Structural adjustment policies encourage independent high-tech products, complete sets of equipment and high value-added goods exports.
The third is to create a good trading environment and properly handle trade frictions. Specialized agencies are designated to conduct in-depth studies on the new features and development trends of international trade friction, improve response mechanisms, improve the ability to respond to trade frictions, and actively respond to foreign trade frictions on China's exports of mechanical products.