What is the impact of news dynamic world trade war on China's machinery industry?

   The trade volume of mechanical and electrical products between China and the United States is relatively high, but most of them are electronic and communication products. According to the statistics of China's customs, in 2016, China's exports of mechanical and electrical products to the United States amounted to US $234.91 billion, and imports from the United States amounted to US $70.93 billion.

    In 2016, the trade surplus of mechanical and electrical products to the United States accounted for 37.5% of the total trade surplus of our mechanical and electrical products, which is one of the main sources of the surplus. In terms of the product structure of China's exports to the United States, the top three mechanical and electrical products exported by China to the United States in 2016 were automatic data processing equipment and its parts and components $49.17 billion, communication equipment and parts $38.93 billion, and electrical equipment $16.3 billion, which accounted for 44.2% of the total mechanical and electrical products exported by China to the United States. Therefore, from the import and export data of mechanical and electrical products of China and the United States, the export of mechanical and electrical products in China is mainly electronic, communication and other products.

    The direct export of machinery and equipment to the United States is relatively small, which is related to the differences in the advantageous industries between China and the United States: we have calculated that there are 104 listed companies in the machinery industry whose export revenue accounts for more than 20% of the total revenue, accounting for about 30% of the total enterprises in the machinery industry; the export products are mainly textile machinery, ship and parts, forming machinery, etc., mainly exported to Asia, Africa and Latin America, while the direct export of machinery and equipment to the United States is relatively small. Due to the great differences in product quality and added value between China and the United States, there is no large-scale positive conflict between China and the United States in the trade of mechanical equipment industry. In the field of high-end products such as high-end machine tools, semiconductor manufacturing equipment, etc., the United States takes advantage; while the investment of American enterprises in China's manufacturing industry is mainly based on the design, production, manufacturing and overall assembly of non core processes and components, with the purpose of utilizing China's cost-effective labor force and reducing the tariffs entering China's market.

    The overall judgment has little impact on China's mechanical equipment industry, focusing on the enterprises whose products are exported to the United States and account for a large proportion of the overall business. Focus: superstar Technology (002444): the company is the leader of hand tools industry, more than 90% of its products are exported to North America; Boshen tools (002282): mainly produces diamond and electric tools. The company has two sales subsidiaries in the United States, namely, pioneer tools and Boshen America. In 2016, the sales volume of the two companies was 163 million yuan, accounting for 38% of the total revenue. Sifang cold chain (603339): the company is a leading special container manufacturer in China, mainly producing tank container products for the global large-scale leasing companies. The downstream of tank container is mainly used in liquid chemical products, food and beverage and energy industry. According to the data disclosed in 2015, North American sales accounted for 30% of total revenue.

    Risk tip: trade war upgrade or spread to other areas; the U.S. manufacturing industry return has a negative impact on the transformation and upgrading of China's manufacturing industry.

    This article is transferred from "Sina Financial News" and deleted in time if it has copyright features