Domestic color TV set producers are exporting more high-end TV sets as low-end sets have been barred by anti-dumping tariffs.

China exported 30,000 plasma display panel (PDP) color TV sets in the first six months of this year, 115 times that of the same time last year, according to statistics from the Ministry of Commerce. The total value of the sets was US$55.38 million, almost 300 times as much as last year.

China's exports of high-end liquid crystal display (LCD) color TV sets grew 80 percent year-on-year to 1.08 million units with a value of US$210 million, 4.52 times that of the same time in 2003.

The total exports of color TVs during the first half of the year reached 18.92 million sets valued at US$2.11 billion, up 56.7 percent and 79 percent respectively.

Xiamen Overseas Chinese Electronic Co (Xoceco) said in its half-year financial report that high-end color TV sets have been the major contributor to export growth.

Li Yong, general manager of the Xoceco's Overseas Trading Co, said the company's TV exports increased by 45.3 percent in the first six months after an annual growth rate of 29.73 percent last year.

"High-end products, such as LCD, PDP and high-definition TV (HDTV) achieved explosive growth and accounted for more than one-third of the total exports," Li said.

Gu Qing, an analyst from Haitong Securities, predicted the share of high-end TV products will continue to expand in total exports as China's exports of CRT (cathode-ray tube) TV sets are blocked by high anti-dumping tariffs.

The US Commerce Department announced on June 3 it would impose dumping duties on China-made CRT TV sets that are 21 inches or larger.

The duties will remain in effect pending a review in five years.

The duties will be as high as 78 percent and major Chinese TV producers will also face duties ranging from 5.2 percent to 26.4 percent.

Chinese producers of TV sets will not make a profit if the United States imposes the duties on their exports.

Gu said the best way to counter the effects of the duties would be to upgrade the industrial structure, so that it is technologically sound.

Meanwhile, the market for CRT TV sets is witnessing a slowdown in the developed market with the growth rate keeping at around 2 percent, while the market of LCD and PDP TVs will increase by 70 percent, she said.

Many domestic producers are using advanced technology for high-end TV sets, Gu said, naming the Konka, SVA, TCL, Changhong, Xoceco, Hisense and Haier.

Besides Xoceco, companies such as Haier and Hisense said they plan to substantially enhance the output of high-end products.

Yu Haitao, director of Hisense's information department, said the company has adjusted its strategy.

"First, we have gradually switched from common color TV receivers to LCD, PDP and digital TV products," Yu said.

Hisense has entered a strategic cooperation agreement with US Digital Television to export digital TV sets to the US market.

Yu estimates Hisense will ship 400,000 digital TV sets under this strategic cooperation this year. Of those, 21,500 units were delivered in the first half.

Color TVs are one of China's major export commodities. In 2003, China sold 32.68 million color TVs with a total value of US$3.26 billion. High-end products accounted for more than 10 percent of the total.

(China Daily August 20, 2004)