China Gold Association: Hardware industry transformation is imperative

“At present, China’s exports of hardware products do not earn money from exporters and earn national tax rebates!” On the evening of July 21, the first investment promotion conference of China International Hardware Exhibition 2014 was held in Jinan. At the meeting, China’s hardware products Shi Yonglan, executive vice president of the association, said that although the total export volume of China's hardware industry has been increasing in recent years, the profit growth of related companies has not been optimistic. Enterprises rely on the product itself to make no money, and profitability comes from the national 13% - With 17% of export tax rebate subsidies, the transformation and upgrading of the industry is imminent.

According to Shi Lanlan, in 2013 China’s hardware import and export volume exceeded the US$100 billion mark, exports totaled 87.8 billion U.S. dollars, and its products cover 227 countries and regions around the world, and it has become an international market that has attracted worldwide attention. However, the position of some hardware companies is still in the “export-oriented” stage, and the industrial chain layout has not extended to “technology-oriented” and “market-oriented”, resulting in a “quantity” breakthrough in production operations, but lack of “quality” improvement. This in turn affects the profitability of the company. “In the current market situation, hardware companies urgently need to join a high-standard business platform to stabilize the scale, enrich the content, enhance the level, and optimize the channels, so as to drive the sound development of the entire industry.” “Shandong has always been the manufacture of hardware and electronic machinery and The largest consumer province is ranked fifth in the country's hardware industry rankings. However, the advantages of the Longgan Skull and Dry Enterprise in the domestic and foreign markets in terms of technology and overall industrial competitiveness are not obvious,” said Fan Yunchang, secretary-general of the Shandong Hardware and Electrical Machinery Association, who told reporters. "Shandong's hardware companies need to use advantage platforms to exchange innovative technologies, improve product structure, and achieve transformation and upgrading."