The 35 year history of transformation, upgrading, and innovative development of China's model county industry can be divided into two stages in terms of time: the first 20 years were mainly achieved through "introducing technology, digesting, absorbing, and innovating", adhering to technological progress, promoting system reform, and specialized production, establishing a relatively complete mold industry system, and forming a considerable scale of mold production capacity. While basically meeting the mold demand of China's consumer electronics products such as household appliances, motor and electrical manufacturing, IT products, building materials, packaging, and daily necessities industries, some mold production capacity has become surplus; In the past 15 years, the main focus has been on developing automotive molds and expanding international markets through integrated innovation, maintaining an average annual growth rate of 13% in mold sales. The contribution rate of mold export growth to mold sales growth is 3-5 percentage points, indicating its important role in the development of China's mold industry.
The significance of mold export for industry transformation and upgrading
(1) Beneficial for promoting the improvement of China's mold level. Before 1998, China's mold trade was dominated by imports (reaching 3-7 billion RMB per year), while exports remained hovering between millions and tens of millions of dollars, mainly completed by foreign or joint ventures. Therefore, exporting can promote the introduction of technology, digestion, absorption, and innovation in the industry, thereby promoting the improvement of China's mold level.
(2) Beneficial for promoting the transfer of domestic production capacity. One of the main purposes of structural adjustment is to achieve effective transfer of excess capacity in some industries formed during the period of rapid development.
The dual driving force of 20 years of development foundation and demand for capacity transfer has forced the mold industry to expand its vision to the international market. In 1999, China's mold exports exceeded 100 million US dollars for the first time and began a rapid development with an average growth rate of 35% for 10 consecutive years. Despite the impact of the world financial crisis, exports exceeded imports for the first time in 2010 (2.2 billion US dollars), and exports reached 4.5 billion US dollars in 2013, transferring production capacity of 280 fz. RMB, accounting for nearly 19% of China's mold sales that year. Compared to the phenomenon of delayed payment of contract funds in the domestic market, the current process of capital recovery in the export industry is relatively standardized, which is conducive to improving the efficiency of enterprises.
(3) Beneficial for accelerating the internationalization of China's mold enterprises. The export of molds not only requires mastery of the technical standards of the export destination, but also familiarity with the tax policies and trade rules of several countries, especially with good after-sales service capabilities. Therefore, there are high requirements for the capital and talent of export enterprises. But through the export of molds, the internationalization level of China's mold enterprises has been accelerated. Currently, many export enterprises have established foreign trade institutions or equipped (trained) foreign trade personnel, and even built factories abroad (including acquisitions and joint ventures).
The situation faced by mold exports
(1) The international mold market is changing, and trade protectionism is on the rise. The world economy is recovering slowly, and the growth rate of the mold market is slowing down. Some developed countries propose the "return of manufacturing industry", while some foreign-funded enterprises (mold users) in China transfer their contract orders to countries outside of China for production; Some governments or industries in certain countries have set obstacles for the development of Chinese molds, leading to the rise of trade protectionism.
(2) There are many export enterprises with small quantities and scattered distribution. In 2012, China's mold exports amounted to 3.7 billion US dollars, with over 14000 export companies (including nearly 2000 trading companies) and an average export value of less than 270000 US dollars. Additionally, two-thirds of the export companies had an export value of less than 50000 US dollars and exported to nearly 100 countries and regions. Due to the small export volume and scattered export locations, most export enterprises have not yet established a complete marketing network and effective after-sales service system, making it difficult to maintain stable customer relationships and market reputation.
(3) The internationalization level of mold export enterprises is not high. The level of information technology construction, international trade talent level, and technical quality standard control of mold export enterprises still lags behind the requirements of the international market, and comprehensive improvement will take time.
Strengthen the 'export driven' strategy
(1) Strive for government support. Molds are high-tech value-added products, and the production process consumes minimal resources and energy, with almost no pollution. They are mechanical and electrical products encouraged for export by the country. The Chinese government has implemented support or assistance policies for mold exports, such as maintaining a high export tax rebate rate, establishing technology driven export bases, supporting overseas marketing networks and after-sales construction, etc.
(2) Enhance the internationalization level of mold export enterprises.
① Firstly, mold companies need to understand and familiarize themselves with the international market. There are two main channels for China's molds to enter the international market: one is through serving foreign-funded enterprises in China; Another way is to directly connect with the international market through overseas visits, exchanges, exhibitions, etc.
Going abroad to participate in exhibitions is the most direct and effective channel for Chinese mold companies to enter the international market. Chinese mold companies have been showcasing their products and exchanging ideas at foreign exhibitions on a large scale since the European Mold Exhibition in 2000. The participating companies have unanimously responded positively and have been actively participating in exhibitions for several consecutive years. The China Model Association also timely held several Sino German and China Europe forums during the exhibition period, further enhancing the revenue of overseas exhibitions. Participating companies not only received orders on the spot, but also familiarized themselves with the market. With the improvement of China's reform and opening up and the level of mold exports, the channels for China's molds to enter the international market have gradually expanded. Local associations, chambers of commerce, trade promotion agencies, and mold enterprises have also made a lot of efforts to explore the international market.
② To enhance the competitiveness of Chinese molds in the international market. The ultimate manifestation of product competitiveness is the competitiveness of enterprises, especially for high-tech equipment products with strong personalization such as molds.
In order to enhance the competitiveness of China's molds in the international market, it is necessary to accelerate the construction of quality assurance systems, foreign trade capabilities, and after-sales service systems for China's mold export enterprises. After nearly two years of research, the China Mold Industry Association has decided to launch an evaluation and licensing activity for "Key Mold Export Enterprises" among its members. The purpose is to guide mold enterprises to accelerate product optimization, quality improvement, and transformation and upgrading through this activity; Cultivate the export capability of mold enterprises, improve the internationalization level and international market competitiveness of China's mold export enterprises; Standardize the business behavior of export enterprises; Recommend to the government regulatory department and obtain support.
15 years of experience in mold exports have proven that the development of mold exports has enabled China's mold industry to grow from small to large. At the same time, it will also prove that focusing on "export driven" is not only an important measure to implement the 12th Five Year Development Plan for the mold industry, but also an important way for China's mold industry to grow from large to strong.