China's hardware industry grows steadily to expand its trade surplus

The hardware industry in China has experienced steady growth over the years, evolving from a modest and fragmented sector into a major global player. In the past, the industry was dominated by small and medium-sized enterprises, often operating out of simple workshops with limited resources and low production standards. However, recent years have brought significant changes. One of the most notable is the improvement in human capital—many industry leaders now hold advanced degrees, such as Ph.D.s and postdoctoral qualifications. For instance, the leader of China Hardware City, the nation's largest hardware market currently under development in Beijing, is a highly educated professional. Another key transformation has been in manufacturing processes and management systems. Companies like Great Wall Precision have adopted advanced technologies and efficient operations, raising the overall quality and productivity of Chinese hardware products. This progress is not only internal but also driven by foreign investments and partnerships. Many international firms have set up production bases in China, bringing with them cutting-edge techniques, materials, and management practices that have further elevated the industry’s standards. Currently, the Chinese hardware sector is undergoing a critical phase of upgrading—from producing mid-to-low-end goods to developing high-quality, high-value products. This shift is boosting the industry’s competitiveness on the global stage. As foreign companies transfer their manufacturing to China, they also bring along advanced production methods and expertise, which help local manufacturers improve their capabilities. Traditionally, the hardware industry has focused on tools, construction hardware, and decorative hardware. These segments are growing rapidly, especially in power tools, hydraulic equipment, and manual tools. The demand for hardware components and parts is also rising, with companies like those in Hebei’s Handan region demonstrating strong sales performance across the country. According to Luo Baihui, head of the International Mould, Hardware and Plastics Industry Suppliers Association, after more than a decade of steady development, China has become the world's largest producer of hardware products, with exports increasing year after year. In terms of export value, tool products lead the way, reaching $5.34 billion, followed by construction hardware at $4.34 billion. Tap and lock exports also show strong performance, reaching $2.23 billion and $680 million respectively. Major markets include the U.S., Japan, Europe, and South Korea. The industry is expanding at an annual rate of around 8%, and last year alone, hardware exports surpassed $5 billion, ranking third among light industries. Looking ahead, with continued improvements in manufacturing and increased production capacity, China’s hardware exports are expected to grow by over 10% annually for the next five years. In the first ten months of this year, the import and export volume of hardware and electromechanical products exceeded $500 billion, with a trade surplus of $7.06 billion, accounting for 64% of the national trade surplus during the same period. This highlights the crucial role the hardware industry plays in China’s broader economic strategy.

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