This is the first face-to-face meeting between China and the United States since Bali last year. International public opinion is generally eagerly anticipating this meeting, believing that stabilizing China US relations will be beneficial to world peace, stability, and economic prosperity and development.
In 2022, the trade volume between China and the United States reached nearly 760 billion US dollars, setting a new historical high. However, the growth of foreign trade exports has slowed down or even declined since the second half of last year, and foreign trade orders have begun to decrease. In the first half of this year, China’s exports to the United States amounted to $239.35 billion, a decrease of 17.9%.
Specifically in the field of fasteners, the export value of fasteners to the United States in the first half of the year was approximately 603 million US dollars, a year-on-year decrease of 29.54% and a sharp drop of nearly 30%. Many export oriented fastener companies have truly felt the arrival of the industry’s downturn. Many people in the fastener industry are also looking forward to this meeting bringing substantial and significant benefits to trade with the United States.
At present, the United States is one of the three major fastener import markets in the world, with a total import value of approximately 8.5 billion US dollars in 2022, a year-on-year increase of 29.5%. The top ten import sources are Taiwan, China (US $3.35 billion), Chinese Mainland (US $1.85 billion), Japan (US $620 million), Canada (US $390 million), Germany (US $380 million), South Korea (US $310 million), India (US $290 million), Italy (US $210 million), Thailand (US $180 million) and Mexico (US $170 million).
At the Las Vegas Fasteners Show held in October this year, there were many suppliers from Taiwan, China, India, Mexico, Türkiye and other countries and regions. Many people took the show as an important opportunity to open the U.S. market and were eager to try to seize market share. If Chinese fastener companies do not take action, this part of the market is likely to be eroded by companies in these regions.
According to the Ministry of Foreign Affairs, the China US dollar summit has achieved multiple results, reaching more than 20 consensuses in politics, diplomacy, cultural exchanges, global governance, military security, and other fields. In terms of dialogue and cooperation, both sides have decided to strengthen high-level exchanges and promote and initiate institutional consultations in various fields such as commerce, economy, finance, export controls, and Asia Pacific affairs. Which fastener related industries may benefit from the easing of Sino US relations?
1. Export oriented new energy industries such as photovoltaics and new energy vehicle batteries
On the one hand, domestic photovoltaic and new energy vehicle batteries still have significant competitive advantages in terms of cost and technology compared to overseas markets; On the other hand, against the backdrop of continuous geopolitical risks and still significant global carbon reduction pressure, there is still a demand for new energy related products overseas. However, previously, exports of domestic new energy related industries were restricted due to the friction between China and the United States. Under the easing of Sino US relations, export-oriented industries with international competitive advantages such as photovoltaics and new energy vehicle batteries are expected to benefit.
2. Industries such as artificial intelligence, environmental protection, and power equipment
In August this year, the US expressed its willingness to strengthen cooperation with China in areas such as artificial intelligence, climate change, and combating fentanyl. In September, the US expressed its willingness to cooperate with China in areas such as artificial intelligence and climate change. The China US dollar summit proposed the establishment of an intergovernmental dialogue on artificial intelligence. Artificial intelligence is an important area for cooperation between China and the United States. On November 15th, China and the United States issued a Sunshine Town statement on strengthening cooperation to address the climate crisis. The current global installed capacity growth of renewable energy is mainly driven by photovoltaic and wind power, and related industries may experience growth.
Industries such as photovoltaics, new energy, artificial intelligence, and power equipment all require a large amount of fasteners. If the export scale expands in the future, the domestic fastener market will also usher in a boom. For fastener companies, the situation next year will not be worse at least. What the screw man needs to do is accumulate knowledge and wait for the arrival of spring.
Post time: Nov-27-2023