Nuggets ASEAN hardware and electrical products into "export a brother"

Since the first anniversary of the China-ASEAN Free Trade Area, the trade volume of Yunnan to ASEAN has been rising. Agricultural products have always been the “exporter” of Yunnan to ASEAN and the world, and have occupied the top of Yunnan’s total exports for many years. But in 2010, a black horse rushed out and surpassed agricultural products to become the “first” export of Yunnan. This is the mechanical and electrical products of our province. In the first three quarters of 2010, Yunnan Province exported various types of mechanical and electrical products to achieve 1.386 billion US dollars, an increase of 1.5 times over the same period of the previous year, accounting for 23.4% of the province's total foreign trade exports, becoming the province's largest export products.

Bilateral tariffs are shrinking year by year
In February 2010, a group of hydroelectric equipment worth more than 200,000 yuan from Kunming, an exporter of mechanical and electrical products, was shipped from the Mohan port and exported to Thailand. Thailand imposes a 2.60% tariff on mechanical and electrical products from China. In 2009, exports to Thailand were subject to a tariff of 4.98%. The same batch of products could be taxed at nearly 5,000 yuan in 2010.

Since the completion of the China-ASEAN Free Trade Area in 2010, China and ASEAN countries have reduced tariffs on a large scale. Although the tax rate of mechanical and electrical products is relatively high compared with the zero tariffs on agricultural products such as fruits and vegetables, it will be found that the tax rate of mechanical and electrical products exported to ASEAN has been greatly reduced compared with previous years. In Thailand, for example, the tariff was still 9.28% in 2007 and fell to 2.60% in 2010. The tax rates of the ASEAN countries such as the Philippines, Indonesia and Myanmar have also fallen sharply. According to the agreement between China and ASEAN countries, by 2018, most countries will reduce the tax rate on China's mechanical and electrical products to below 2.0%.

Taking advantage of this opportunity, in 2009, our province invested in a national-level port city Ruili with a total investment of 300 million yuan and a total construction area of ​​120,000 square meters of South Asia Electromechanical Building Materials Hardware City. The completion of the standardized and internationalized large-scale hardware and electrical city of the first border crossing in Yunnan Province has played an irreplaceable role in the docking of ASEAN and South Asia in Yunnan Province. Yunnan hopes that this electromechanical city will become a model to create an international professional brand market oriented to Southeast Asia and South Asia. Followed by, Yunnan will also plan to build the Electrical and Mechanical Branch of the Electromechanical City in Dali, Tengchong, Yingjiang, Wenshan Tianbao and Honghe River Estuary.

In order to adapt to the needs of China-ASEAN Free Trade Area and South Asian and other international markets for China's hardware and mechanical products and brand quality requirements, the "channel advantage" will be transformed into "economic advantage", Yunnan Hardware and Electrical Chamber of Commerce and other related units passed the 2009 China-Vietnam The International Trade and Tourism Fair, the 17th Kunming Import and Export Commodities Fair and the 2nd South Asian Commodities Fair, and the Ruili China-Myanmar Border Trade Fair will promote China's hardware and electrical products to ASEAN countries. In addition, the Yunnan Hardware and Electrical Chamber of Commerce also actively bridged the gap between the government and enterprises, and fully played the role of the platform of the Chamber of Commerce. The group visited the government, enterprises, chambers of commerce in Myanmar, Mandalay, Lao Cai Province, Vietnam, Da Nang, and Thailand. Myanmar, Vietnam and other countries have reached a series of project cooperation intentions such as solar energy, photovoltaic lighting, agricultural machinery assembly plant, cable TV network construction, construction of engine factory, construction of logistics base, etc., and reached the old street government of Vietnam in 2010. The cooperation intention of the "China Hardware and Electromechanical Famous Products" special exhibition signed a friendly cooperation agreement with the Lao Cai Province Trade and Investment Promotion Center.

ASEAN becomes the largest market for Yunnan mechanical and electrical exports
In 2010, the province's export of mechanical and electrical products has reached 1,361, an increase of 64 over the same period in 2009. Among them, the export of metal products increased rapidly, achieving a foreign exchange earning of 546 million US dollars, a year-on-year increase of 3.5 times, ranking first in the province's export of various types of mechanical and electrical products. The export market of mechanical and electrical products in our province has expanded from 141 countries and regions in the same period last year to 190. Among them, ASEAN is the largest export market, with exports to ASEAN amounting to 535 million US dollars, an increase of 45.4%.

Among all the exporters of electromechanical products in our province, Yunnan Tin Industry Co., Ltd. ranked first in terms of export value. In the first half of 2010, the Group's exports reached US$84.88 million, an increase of 250.6%. Yunnan Machinery Import & Export Co., Ltd. exported US$43.38 million, an increase of 30.9%.

Since the completion of the China-ASEAN Free Trade Area, relevant departments of Yunnan Province have made efforts to help mechanical and electrical products enterprises to make good use of their policies, expand exports, improve the core competitiveness and product quality of export electromechanical products, and actively guide electromechanical products enterprises to “go global” and explore internationally. The market, especially the ASEAN countries, has become the fastest growing and most dynamic market for mechanical and electrical products in Yunnan Province. Malaysia, Indonesia, Laos, Myanmar, Thailand and other ASEAN countries have become the main markets for Yunnan's mechanical and electrical products exports. Yunnan's geographical advantages have been fully demonstrated and reflected.

It is understood that the main reason for the high growth of the import and export of electromechanical machinery is that the export of electromechanical products is driven by the project, and the market for the export of mechanical and electrical products in Yunnan is mainly based on neighboring countries, and the economic complementarity between these countries and China. Very strong, the corresponding market demand is very large. Therefore, from the mechanical products exported from Yunnan, the market demand for agricultural machinery, hardware, engineering machinery, containers, railway locomotives and other products in ASEAN countries has been correspondingly expanded.

Embracing the ASEAN market
After the completion of the China-ASEAN Free Trade Area, not only Yunnan, but also the country’s exports of mechanical and electrical products have grown rapidly. Recently, Zhang Jingjing, president of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, predicted that in 2010, the export volume of China's mechanical and electrical products will reach 940 billion US dollars, an increase of about 30%. China is expected to become the world's largest exporter of mechanical and electrical products.
At the same time, the traffic between China and ASEAN countries has become more smooth. In addition to the existing large roads, the high-speed railway from Kunming to Laos has been approved and is being implemented, and will be extended to Singapore in the future. The accessibility of transportation will inevitably bring more new markets, and mechanical and electrical products are also facing new opportunities. Many enterprises in Yunnan have already set their sights on the future market. The relevant person in charge of Kunming Motor Factory said that the company has already placed the next market expansion in Laos. Laos has a weak industrial base and needs a lot of basic equipment in economic development, which has great market potential. The hydropower equipment and motor products of Kunming Electric Machinery Factory are all needed for the construction of ASEAN countries such as Laos. After the completion of the high-speed railway, it will open many markets such as Malaysia and Indonesia.

Yunnan's electromechanical enterprises are also actively cooperating to develop the ASEAN market with overall strength. In order to turn the channel advantage into an economic advantage, the Yunnan Hardware and Electrical Chamber of Commerce has organized several members to hold a delegation to ASEAN to participate in the promotion meeting, and has reached solar energy, photovoltaic lighting, agricultural machinery assembly plant and cable TV with Thailand, Myanmar, Vietnam and other countries. A series of project cooperation intentions such as network construction, construction of engine factory and construction of logistics base.

As a “bridgehead” facing ASEAN, what is the main market development direction in Yunnan? The relevant person in charge of Kunming Motor Factory said that the current intuitive feeling is that the entry and exit is smoother, the flow of personnel is increasing, and there is almost no obstacle to the ASEAN countries. Kunming Motor Factory's export business is mainly concentrated in hydropower equipment and motors. “In the past, in the export of hydropower equipment, the ASEAN market was mainly concentrated in Vietnam. Last year, exports to Myanmar and Thailand increased a lot. Especially the Thai market is very large, and there will be a possibility to gradually replace Vietnam as the main market of ASEAN.”

Challenges and opportunities coexist
New opportunities are often accompanied by new challenges. The completion of the China-ASEAN Free Trade Area brings opportunities to Yunnan and faces challenges from other provinces, regions and cities in China. In the past, the geographical advantage of Yunnan was very obvious, but with the introduction of a series of policies such as “zero tariff” and channel construction, more domestic enterprises participated in the ASEAN market. In addition to using the geographical advantages, Yunnan enterprises must rely more on improving product quality.

The Pearl River Delta is China's manufacturing center, but with the increase in land and labor costs, many companies have also set their sights on ASEAN countries with advantages in land, labor and sales markets. Midea Group has set up production and processing bases in Vietnam and Thailand. Foshan also encourages local enterprises to adopt the strategy of “trade first, investment follow-up”, and choose countries such as Thailand and Vietnam with relatively weak economy and cheap labor and natural resources. The target site for overseas processing. Encourage and guide the traditional advantageous industries such as home appliances and building materials to go out and drive the export of technology, products and labor services. Many enterprises in Guangdong, Guangxi and even Jiangsu and Zhejiang also have a place in the China-ASEAN Free Trade Area. These have become new challenges that Yunnan has to face. Yunnan motor products have always had a strong advantage in Myanmar, but in recent years, mechanical and electrical products in Jiangsu and Zhejiang have also entered the Myanmar market, and industry associations have been established in the local area, and the price advantage is obvious. The market share of Yunnan-made motors in Myanmar is constantly increasing. Zoom out.
 

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