The hardware industry in China is experiencing rapid growth, with an annual increase of 20% and a total output value reaching 400 billion yuan—surpassing the household appliance sector. As stated by Luo Baihui, secretary-general of the International Mould, Hardware and Plastic Industry Suppliers Association, the country has become a global leader in hardware manufacturing. China’s light industry exports make up around 25% of the national total, with hardware products leading the way. These goods are found all over the world, solidifying China’s status as a major force in the hardware industry.
In the past, the industry was characterized by numerous small and medium-sized enterprises operating from low-level workshops. However, recent years have brought significant changes. First, there's been a marked improvement in the quality of personnel, with professionals like Ph.D.s and postdoctoral researchers now managing key markets such as Beijing China Hardware City, the nation’s largest hardware marketplace. Second, production processes and management standards have advanced considerably. Companies like Great Wall Precision now operate at a high level in both technology and efficiency.
Despite these improvements, the domestic production process remains uneven, with many foreign companies using China as a manufacturing base. This has led to increased competition and the introduction of advanced technologies and management practices into the local industry.
Currently, the Chinese hardware industry is transitioning from mid-to-low-end production to higher-quality, more sophisticated products. This shift is driving growth and allowing for the integration of advanced foreign methods and materials. Traditional sectors like tools, construction hardware, and decoration hardware are evolving rapidly, with power tools and hydraulic equipment seeing strong development.
There is also a rising demand for components and parts. For example, a small processing plant in Handan, Hebei, has managed to build a nationwide sales network of over 100,000 people, highlighting the industry's expanding reach.
In terms of exports, tool products lead with $5.34 billion, followed by construction hardware at $4.34 billion. Taps and locks also contribute significantly, with exports reaching $2.23 billion and $680 million respectively. The U.S., Japan, Europe, and South Korea are the main export destinations. China’s hardware exports grew by about 8% annually last year, surpassing $5 billion and ranking third among light industries. With continued improvements in manufacturing capabilities, the industry is expected to grow by over 10% per year 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, making up 64% of the national surplus during that period.
Looking ahead, the Chinese hardware industry will become increasingly diversified, with higher technological standards and improved product quality. With better regulation and supportive policies, the sector is poised for even greater expansion in the coming years.
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