Advanced U.S. products used in China's manufacturing sector

Updated 2016-12-28 11:05:36 Global Times

Nation aims to upgrade technology through opening-up

Advanced products made in the U.S. such as ultrasonic welding machines are used in China's manufacturing sector, which experts said is normal due to the developed manufacturing sector in the U.S.

Experts noted that China is upgrading its industries to catch up with Western countries but needs to continue to open up its economy.

A lithium-ion battery maker based in East China's Fujian Province told the Global Times on condition of anonymity that the company uses ultrasonic welding machines made in the U.S. because of "their high quality."

Chinese smartphone maker OPPO Electronics Corp also told the Global Times that some of its phones use chips from U.S.-based Qualcomm Inc, but the company declined to give details.

Qualcomm signed a Chinese Patent License Agreement with domestic high-tech company Gionee Communication Equipment Co on Tuesday, covering third- and fourth-generation services.

Under the agreement, Gionee gets a royalty-bearing patent license to develop, produce and sell 3G WCDMA and CDMA2000 and 4G LTE complete devices for use in China, according to an announcement on Qualcomm's website.

It's normal to see these products made in the U.S. exported to China, experts noted.

"On the one hand, as the world's largest manufacturing country, China has greater demand for advanced equipment. On the other hand, with most basic manufacturing industries being transferred to other nations, the advanced manufacturing sector boomed in the U.S.," Mei Xinyu, a research fellow at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said Tuesday.

China still lags behind in terms of avionics and engines, which means that the country has to import such items, He Weiwen, an executive council member at the China Society for the WTO, told the Global Times on Tuesday.

The first domestic large passenger aircraft - the C919 - uses engines from General Electronics, and other crucial components including avionics, flight control systems and hydraulic pressure systems are provided by UK and French suppliers, according to a report on Commercial Aircraft Corp of China's website in November.

"The segment of U.S.-made mechanical and electrical products involving transportation vehicles, electric appliances and equipment was 37.5 billion yuan (.40 billion) in the first nine months of 2016, compared with 42 billion yuan from Japan during the same period," He noted.

In 2015, U.S. exports to China totaled 6.2 billion, dropping 6.1 percent year-on-year, U.S. Department of Commerce-affiliated website export.gov reported in September 2016.

However, some of China's advanced products such as harbor machinery are competitive in the world arena, Mei said.

"For example, Shanghai Zhenhua Port Machinery Co had a global market share of 75 percent to 85 percent in the harbor machinery sector in 2016. Generally speaking, China's equipment manufacturing production accounted for one-third of the world's total in 2013. In recent years, the proportion has been rising," Mei explained.

The State Council, China's cabinet, announced the "Made in China 2025" initiative in May 2015, in a bid to restructure domestic manufacturing by attaching importance to high-tech machinery and goods and reducing labor-intensive production.

China aims to raise domestic production of core components and materials to 40 percent by 2020 and 70 percent by 2025, as stated in the document.

China should continue to open up its economy to attract advanced technology and talent, and import high-end products to learn from developed economies and upgrade its manufacturing sector, He noted.

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