Overview of China electronics and information products

China’s import and export of electronic and information products kept moderate growth in 2008, with trade value amounting to 885.43 billion US dollars, up 10 percent by year.

However, the growth rate was 13.4 percentage points lower than that of 2007, and 7.8 percentage points lower than that of that of the country’s foreign trade in commodity.

Gloomy economic environment and other uncertainties will affect the world’s electronic and information product market. The industry’s market demand is expected to drop worldwide. As the export dependence rate of China electronic and information industry exceeds 60 percent, the world’s shrinking demand will drag down the industry’s export.

In addition, the industry’s export may be further hindered by the increasing trend of trade protectionism. Statistics show that there were 98 new cases of anti-dumping investigations and 54 new anti-dumping measures in the first half of 2008, up 39 percent and 56 percent, respectively. Meanwhile, the European Union raised the import duty for plat panel module groups by four percentage points to 14 percent, and set stricter ecological standards on energy-using products.

On the contrary, China provided preferential policies for the industry to develop. It raised the export rebate rate in 2008, benefiting more than 100 electronic and information products. The State Council approved the government’s support plan for electronics and information industry in February 2009. These measures are expected to encourage the industry’s export.

The Ministry of Industry and Information Technology estimates that the industry’s export grows 10 percent, as China’s electronic and information product structure is complementary to that in other countries, and these Chinese products are competitive, as the industry speeds up technology innovation, and product upgrading.

The impact of financial crisis on China’s foreign trade began to pay off in the second half of 2008, with the growth rates down dramatically since August. The import and export value of China’s electronics and information industry dropped 23.9 percent and 10.4 percent, respectively, in November, and 26.4 percent and 16.6 percent in December from a year ago.

Under such situations, Electronic information product trade structure underwent adjustment. Such products as computers, telecommunication equipments and household appliances took the lead in export value. Their joint export value amounted to 383.49 billion dollars, accounting for 73.5 percent of the industry’s total, but the proportion was 1.2 percentage points lower than 2007.Included were 212.885 billion dollars from computers, 87.05 billion dollars from telecom equipments, and 83.55 billion dollars from household appliances, up 9.63 percent, 13.4 percent and 15.73 percent, respectively.

The combined import value of electronic instrument, computers and electronic elements totalled 278.1 billion dollars, accounting for 80.6 percent of the industry’s total. Included were 148.107 billion dollars from electronic instrument, 93.112 billion dollars from computers and 47.844 billion dollars from electronic elements, up 2.04 percent, 6.02 percent and 6.05 percent, respectively.

Export in form of processing trade The export of China electronics manufacturer and information products in processing trade slowed down in 2008, while that in form of general trade developed steadily. Export from foreign funded companies down The import and export of electronic and information products from foreign funded companies still took a great proportion in China’s total, but the growth rate declined.

Major export destinations and import sources Hong Kong, the United States and Japan were the top three in importing China’s electronics and information products with the export value reaching 125.9 billion dollars, 100.48 billion dollars and 33.806 billion dollars, respectively, up 4.54 percent, 6.16 percent and 14.75 percent.

The top three were followed by Netherlands, Germany, the Republic of Korea (ROK), Singapore, Taiwan, UK and Malaysia. The combined import value of the top ten destinations totaled 383.02 billion dollars, accounting for 73.4 percent of China’s total export value.

Among the top ten importers of China electronics and information products, the import growth rates of Germany and ROK advanced 12.1 and 15.3 percentage points, respectively, while the rest declined.

During the period, China’s re-import value of electronic and information products amounted to 75.366 billion dollars, up 8.66 percent, 12.22 percentage points lower than 2007.

The mainland’s import value from Taiwan hit 61.918 billion dollars, up 2.44 percent, 15.28 percentage points lower than 2007; that from ROK reached 56.551 billion dollars, up 3.95 percent, representing a decline of 17.16 percentage points than 2007.

The top ten import sources from the fourth to tenth were Japan, the Philippines, Malaysia, US, Thailand, Singapore and Germany. Its import value from the top ten amounted to 336.34 billion dollars, up 5.4 percent, accounting for 92.5 percent of China’s total.

Key production bases of China’s import and export of electronic and information product The Pearl River Delta, Yangtze River Delta and Bohai Rim Region are still key production bases for China’s electronic and information product foreign trade.

Guangdong 219.375 13.02% 24.88% Jiangsu 115.966 9.49% 25.94% Shanghai 78.993 17.03% 33.42% Zhejiang 21.199 12.99% 20.45% Shandong 18.624 52.75% 53.59% These five provinces and municipalities contributed the export value accounting for 87 percent of China’s total.

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