Analysis of Trade Deficit of China's Machinery Industry

In 2010, the overall strength of China's industry jumped to a new level. In 2010, the added value of all industrial enterprises above designated size increased by 15.7% year-on-year, and the growth rate accelerated by 4.7 percentage points year-on-year. The total industrial added value increased from 7.72 trillion yuan in 2005 to 16 trillion yuan in the whole year, with an average annual growth rate of over 11%. Relevant statistics show that in 2010, China's total import and export of machinery products reached 1.6 trillion US dollars, an increase of 32.3% over the same period of last year, surpassing the historical high of 2008 by more than 233.5 billion US dollars; the export volume of mechanical products drove the country's foreign trade exports to increase by 18.3 percentage points.

According to customs statistics, in 2010, China's machinery industry realized a total import and export volume of 513.83 billion US dollars, an increase of 36.39% year-on-year, higher than the national import and export growth of 1.69 percentage points. Among them, exports were 258.48 billion US dollars, up 32% year-on-year; imports were 255.347 billion US dollars, up 41.14% year-on-year; the machinery industry's cumulative import and export trade surplus was 3.136 billion US dollars, a significant decrease of 11.771 billion US dollars from the 14.907 billion US dollars in the same period of last year.

Statistics show that in 2010, the total import and export volume of machinery industry and exports and imports both reached record highs. In December, the total import and export volume of machinery industry exceeded US$50 billion for the first time, reaching US$50.848 billion, a record high, and year-on-year growth. 24.26%. Among them, exports were 24.952 billion US dollars, up 20.41% year-on-year; imports were 25.896 billion US dollars, up 28.22% year-on-year. Despite this, the total volume of imports and exports and exports and imports in December dropped significantly from November, down by 14.17, 12.73 and 15.79 percentage points respectively.

Affected by various factors, the trade balance of machinery industry fluctuated greatly. In December, there was a deficit in the fifth month since 2010. The import and export deficit of the month reached 944 million US dollars, and the trade deficit increased by 318 million US dollars from last month. In this regard, industry insiders Luo Baihui believes that the increase in trade deficit is mainly due to some high-end mechanical products and foreign advanced countries still have a certain gap, still can not meet the needs of domestic users. To this end, the leading companies from the automotive, machine tools, molds, engineering machinery, ships, railway equipment and other industries should speed up the establishment of marketing networks abroad, foster export bases, and achieve a transition from "shop type" to "marketing type".

In 2010, the coordination of inter-regional development was further enhanced. The added value of industrial enterprises above designated size in the eastern, central and western regions increased by 14.9%, 18.4% and 15.5% respectively. From January to December, in 31 provinces and cities, the total import and export volume of machinery industry in Guangdong, Jiangsu and Shanghai reached 270.062 billion US dollars, accounting for 52.56% of the total national trade. The total import and export volume of machinery industry in Guangdong Province reached 121.422 billion US dollars, up 33.19% year-on-year, of which imports totaled 50.378 billion US dollars, up 38.46% year-on-year, and exports totaled 71.063 billion US dollars, up 29.69% year-on-year. The total import and export volume of Jiangsu Machinery Industry was 78.592 billion US dollars, a year-on-year increase of 44.18%. The total import and export volume of Shanghai Machinery Industry was US$70.029 billion, a year-on-year increase of 38.22%. In terms of trade balance, there are 14 provinces and cities with trade surpluses, of which the three provinces with the most surplus are: Zhejiang Province ($26.47 billion), Guangdong Province ($20.685 billion) and Jiangsu Province ($5.427 billion). There are 17 trade deficit provinces, of which the three provinces with the largest deficit are: Beijing (-311.81 billion US dollars), Shanghai (-12.81 billion US dollars) and Jilin Province (-8.39 billion US dollars).

In 2010, there were 8 bilateral trade totals of more than 10 billion U.S. dollars in China’s machinery industry and major trading countries, of which only 4 countries or regions with a total export value of more than 10 billion U.S. dollars and more than 10 billion U.S. dollars in total imports. There are 5 or regions. From January to December, the EU, Japan and the United States are still the largest trading partners of China's machinery industry, with a total trade volume of 286.768 billion US dollars, accounting for 55.81% of the whole industry. Among them, bilateral trade with the EU totaled US$127.654 billion, up 35.61% year-on-year; total trade with Japan was US$968.11 billion, up 46.68% year-on-year; total import and export trade to the US reached US$62.302 billion, up 31.55% year-on-year. In the month of December, the deficit in the import and export trade of machinery industry mainly came from Japan, South Korea and the European Union. Among them, imports from Japan reached 7.77 billion US dollars, up 30.42% year-on-year, exports were 2.71 billion US dollars, up 15.56% year-on-year, trade deficit reached 5.599 billion US dollars; imports from South Korea 2.12 billion US dollars, up 34.24% year-on-year, exports 848 million US dollars, year-on-year growth 7.69%, the trade deficit reached 1.277 billion US dollars; the import from the EU was 8.394 billion US dollars, an increase of 26.4%, the export was 4.121 billion US dollars, an increase of 19.93%, and the trade deficit reached 4.273 billion US dollars.

General trade and processing trade remain the most important trade methods for the machinery industry. From January to December, the total import and export volume of general trade was 297.82 billion US dollars, and the trade volume accounted for 57.96%, an increase of 45.77%. Among them, imports were US$162.628 billion, up 50.46% year-on-year; exports were US$135.192 billion, up 40.51% year-on-year. The total import and export volume of processing trade was 156.576 billion US dollars, and the trade volume accounted for 30.47%, an increase of 25.97%. Among them, imports were US$53.554 billion, up 25.93% year-on-year; exports were US$103.02 billion, up 25.99% year-on-year. From the trade balance, the annual trade surplus of the machinery industry mainly comes from processing trade. From January to December, the processing trade surplus reached 49.468 billion US dollars, of which the processing trade surplus was 43.489 billion US dollars, and the processing and assembly trade surplus was 5.979 billion US dollars.

In 2010, new progress was made in industrial restructuring. From January to December, state-owned, private and foreign-funded enterprises realized total import and export volume of 90.222 billion, 106.72 billion and 316.889 billion, an increase of 13.36%, 43.24% and 42.33%. The trade deficit of state-owned enterprises was 3.597 billion US dollars, the deficit increased by 510 million US dollars from the previous month; the trade deficit of foreign-funded enterprises was 33.037 billion US dollars, the deficit scale increased by 3.996 billion US dollars from the previous month; the private enterprise realized a trade surplus of 39.77 billion US dollars, the surplus The scale increased by $3.565 billion from the previous month. From January to December, in the 13 industries of the machinery industry, except for the cumulative growth rate of import and export of heavy mining industry, the growth rate of the other 12 industries was positive. From the perspective of the industry, the two industries of automobile and machine tool have performed outstandingly. The import and export of the automobile industry has the fastest growth rate, totaling US$796.66 billion, up 59.69% year-on-year. Among them, imports were 48.845 billion US dollars, up 74.95% year-on-year; exports were 30.821 billion US dollars, up 40.3% year-on-year. The import and export growth rate of the machine tool industry followed closely, with the total import and export volume reaching US$215.63, a year-on-year increase of 57.6%. Among them, imports were 15.927 billion US dollars, up 66.73% year-on-year; exports were 5.636 billion US dollars, up 36.49% year-on-year. From January to December, among the 92 products monitored by the machinery industry, the import and export value of metal processing machine tools reached 11.135 billion US dollars. The total import volume of metal processing machine tools reached 97,875 units. The annual import price showed a steady decline. The annual import price was 95,796.69 US dollars. The annual export volume of metal processing machine tools reached 4,385,475 units. The trend of the type of fluctuation, the annual export unit price is 403.07 US dollars.   In 2010, China's electronic information industry entered a stage of restorative growth, and overall it showed a steady trend before the high. The added value of the electronics manufacturing industry increased by 16.9% over the previous year, and the growth rate accelerated by 11.6 percentage points year-on-year. The software industry revenue exceeded 1.3 trillion yuan, an increase of 31.3%.

In 2010, new breakthroughs were made in independent innovation capabilities. About 40% of the main products of the machinery industry are close to or reach the international advanced level. Clothing, home textiles, home appliances, automobiles and other industries have formed a number of independent brands. In 2010, the domestic market share of China's own brand passenger cars reached 45.6%. Manned space flight and lunar exploration have been successful. The domestic new feeder aircraft has achieved the first flight, and a number of major technical equipment such as UHV transmission and transformation equipment and million tons of ethylene complete sets have been independently manufactured. A number of major independent innovations have been achieved in key areas such as high-end CNC machine tools and next-generation broadband wireless mobile communications.

In 2010, the achievements in the localization of major technical equipment were significant. The output value of new products reached 18.92%, which was 8 percentage points higher than the growth rate of total output. According to reports, the national major science and technology projects have achieved phased application results. China's third-generation mobile communication TD-SCDMA with independent intellectual property rights has been demonstrated and promoted on a large scale. The Feiteng 1000 domestic central processor has been successfully applied to the petascale computer "Tianhe No.1", high-generation LCD panel and other major projects. Speed ​​up implementation. Luo Baihui believes that the upgrading of machinery industry products is accelerating, and the trend of flat, network, intelligent and green is obvious. The integration of informatization and industrialization has achieved initial results. The level of production equipment digitization and process control automation has been continuously improved. Some key industry information management and decision-making systems have entered the application integration stage. Emerging industries such as e-commerce have emerged rapidly, and the level of economic and social information has increased significantly. However, the current industrial economic operation still faces some difficulties and problems. For example, the trade environment is complex and changeable, and exports may face long-term pressure. The pressure to manage inflation expectations is increasing, and the production costs of enterprises are rising. The problem of financing for small and medium-sized enterprises has not been fundamentally solved. The development environment still needs to be optimized; the constraints on resources and environment are increasingly prominent, and the situation facing energy conservation and emission reduction is still grim. During the “Twelfth Five-Year Plan” period, more attention should be paid to structural energy conservation.

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