> Electromechanical

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Electromechanical industry in Chongqing is developing steadily. Among the top 10 export-oriented enterprises in Chongqing , 8 are engaged in electromechanical sector. In 2001, export volume of electromechanical products in Chongqing was US$678.19 million, accounting for 61.5% of the city's total export, only to over-fulfillment the year's export target (US$575 million). Export volume in electromechanical sector reached US$383.06 million, accounting for 55.2% of the total in the first half of 2003. The main subsectors of Chongqing electromechanical sector are automobile manufacturing, motorcycle manufacturing and their components manufacturing. The leading enterprises engaged in auto and components manufacturing are: Changan Automobile (Group) Co., Ltd., Chongqing Changan Ford Automobile Co., Ltd., Chongqing Changan Suzuki Automobile Co., Ltd., Qingling Motors (Group) Co., Ltd., Chongqing Dajiang Automobile Works, Chongqing Changjiang Bearing Industrial Corp., Ltd. and Chongqing Cummins Engine Co., Ltd., etc. The leading enterprises specializing in motorcycles and their components manufacturing are: Chongqing Lifan Group, Chongqing Zongshen Motorcycle Group, Chongqing Loncin Motorcycle Group, Chongqing Jianshe Industrial (Group) Co., Ltd., China Jialing Group, Chongqing Qiutian Motorcycle Components Factory and Chongqing Qingshan Industry Co., Ltd., and so on. From January to October 2002, 296,700 automobiles and 2,947,400 motorcycles were produced in Chongqing ; and gross industrial output value of 21.239 billion yuan and 18.673 billion yuan (in constant price) were achieved respectively.

The other leading export enterprises in Chongqing electromechanical sector are: Chongqing Electromechanical Equipments Import & Export Co., Ltd., Chongqing Hans Anhai Youyang Import & Export Co, Ltd. and Chongqing Metals Minerals & Machinery Co., Ltd. etc. Motorcycles are main electromechanical exports in Chongqing ; however, the export value of non-motorcycle products was up to US$142.08 million. In the key electromechanical exports, export volume of instruments was US$25.38 million; that of gasoline (diesel) engines and their components was US$18.76 million; that of automobiles and their components was US$7.95 million; that of steel products was US$9.11 million; that of bearings was US$2.59 million; that of telescopes was US$2.40 million; that of batteries was US$4.34 million; and that of nonmetal permanent magnets was US$2.53 million.

1. The basic export features in electromechanical sector during the first half of 2003 are as follows:

• Motorcycle exports play a key role in Chongqing electromechanical exports. Motorcycle contributes the most to export growth in electromechanical sector. For example, export value of electromechanical products from January-June increased by US$162.16 million, among which, export value of motorcycles increased by US$108.9 million.
• Export volume of general gasoline & diesel engines and their components has increased substantially and they have become the most potential exports in electromechanical sector. Since 2003, Chongqing lays much emphasis on gasoline & diesel engines and their components and regards them as the next key project for export expansion. Until now, the export amount has increased by 122.9% than that of the same period last year. Henceforth, gasoline & diesel engine products will become another kind of important exports besides motorcycles.
• On the basis of primary market pluralism last year, Chongqing has been strengthening the development of international markets this year, only to further solidify and develop market pluralism. There are 11 countries or regions with import volume of Chongqing-made electromechanical products over US$10 million during the first half of this year, 4 more than the same period last year. Furthermore, the number of exporting countries or regions is 140, 13 more than the same period last year.
• The number of export enterprises in electromechanical sector is increasing gradually. There are 248 enterprises with tangible export achievements in Chongqing in the first half of 2003, an increase of 43 than that of the same period last year.

The advantageous electromechanical products and their related leading enterprises in Chongqing are as follows:

--- General machinery: Chongqing General Industry (Group) Co. , Chongqing Jiangbei Machinery Factory, Chongqing Gas Compressor Factory and Chongqing Water Pump Factory.

--- Machine tools: Chongqing Machine Tool Works, Chongqing No. 2 Machine Tool Works and Chongqing Tools Plant.

--- Electrical products: Chongqing ABB Transformer Co., Ltd., Chongqing Motor Works, Chongqing Hydraulic Turbine Co., Ltd. and Chongqing Bosen Electrical Co., Ltd.

--- Electronic information products: Southwest Computer Co., Ltd., Chongqing Konka Electronics Stock Co., Qingjia Electronics Co., Ltd., Jinmei Communication Co., Ltd. and Chongqing Jianan Instrument Factory.

Under the guidance of State Electromechanical Office and the Municipal Committee, electromechanical enterprises in Chongqing have overcome many adverse situations, such as the Iraq War and the SARS, and have produced remarkable results in exports.

2. Advantages of electromechanical products in Chongqing include:

• By fully applying state policies that support export of electromechanical products, the enterprises launched product research and development and technical innovation, and strengthened core competitiveness. Thus, the problem of working capital for enterprise export has been solved, and a favorable environment for enterprises' export expansion has been created.
• The municipal government departments as Chongqing Municipal Government, Foreign Trade and Economic Committee, Economic Committee and Municipal Financial Bureau attach great importance to structural adjustment of electromechanical products and imparted a series of supporting measures.
• The enterprises in Chongqing have strengthened the consciousness of developing export-oriented economy and reinforced the enthusiasm of international market development. Key motorcycle enterprises, such as Lifan and Loncin, put international market development first and dispatched permanent staff in Southeastern Asia and Middle East , etc.
• An integrated export and production system has been established (such as Jialing , Jianshe, Changan, Qingling, Lifan, Loncin, Zongshen and so on).

3. The existing problems and shortages in electromechanical export are as follows:

• Total export is not high. Export volume of electromechanical products in Chongqing only accounts for 0.5% in that of the whole country and there exists a big gap from that of eastern coastal areas.
• Export product mix is not diverse. The main exports in Chongqing electromechanical sector are motorcycles. The electromechanical products, of which export volume exceeded US$20 million, only included instruments and general gasoline (diesel) engines last year.
• Most of electromechanical enterprises lack export enthusiasm, know little about foreign trade and international market, and especially are in shortage of personnel engaged in international trade. All these factors restrain export expansion of electromechanical products.
• Some enterprises have difficulties in financing, which affect electromechanical exports in a certain degree. For instance, due to financial difficulties, Shenyu Electronics Co., Ltd., can not fulfill the overseas orders.
• Iraq war and SARS severely restrained the intercourse and business exchange of the municipal government and enterprises with international counterparts, as well as causing after effects.
• The export markets are still comparatively centralized in a few countries. The products aren't of very high quality and technological levels. Moreover, enterprises have difficulties in developing high-tech products.
• Reform of the state-owned enterprises is relatively lagging behind, and enterprise management and mechanism reform are backward accordingly.
• The talents are moving to other places.

In general, the competitiveness of Chongqing electromechanical products is not strong and there exist some difficulties in further export expansion. Nevertheless, facing new opportunities after China's entry into WTO, electromechanical enterprises will be promising if they lay great emphasis on innovation and development, guarantee product quality, develop new products, establish and give full play to overseas sales and service centers, and try every means to develop international markets.