Mechanical, electrical exports to leap by 10%
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Exports of mechanical and electrical products, which account for more than half of the nation's export volume, are expected to increase by 10 percent in 2010, a senior government official said Tuesday.
The overall export scenario this year will "definitely improve" compared with last year, with year-on-year growth of mechanical and electrical exports set to climb 10 percent, said Zhang Ji, director of the Department of Mechanic, Electronic and Hi-tech Industry under the Ministry of Commerce (MOFCOM).
But there is little chance of repeating the strong growth seen in 2007 when a year-on-year surge in the sector hit 27.6 percent, he added.
"A 10 percent increase in exports in this sector is realistic although the end result should be more positive after growing [international] trade protectionism is taken into account," said Bai Ming, an economist with the Chinese Academy of International Trade and Economic Cooperation.
China's exports of mechanical and electrical products declined 13.4 percent year on year to $713.1 billion in 2009, which accounted for 59.3 percent of China's overall exports, according to statistics from MOFCOM.
About 65 percent of export growth in this sector was driven by rising demand from emerging markets in Africa, the Middle East and Latin America last year, Zhang said.
China imported $491.4 billion in mechanical and electrical products in 2009, down 8.7 percent year on year.
Meanwhile, total trade volume in the sector declined 11.5 percent to $1.2 trillion in 2009.
China's relatively low production costs have benefited its labor-intensive industries such as shipping, machinery and household electrical appliances, giving it an obvious price advantage, analysts said.
But that advantage may not be sustainable if Chinese enterprises fail to become more competitive and improve their technological edge, said Bai.
Chinese companies should strive to beef up their research and development skills now while many international companies are still bogged down in financial turmoil, Bai said.
Both Chinese and EU enterprises have demonstrated a "strong intention" to further cooperate on technology exchanges, Zhang of MOFCOM said.
"Chinese enterprises hope to import advanced technologies, equipment and key components, while European companies are leaders in these areas," the director said.
He added that the government will help facilitate further cooperation.
China's exports rose 17.7 percent in December, helping the nation overtake Germany as the world's largest exporter.
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