The total output of fasteners in China will reach over 600 million tons in 2010, of which exporting volume is set to be 300 million tons, indicating that China will be global manufacturing base of fasteners. How will the Chinese fastener be affected by the dramatic increase of fastener export? Although there are various different opinions among insiders, they all admit that Chinese fastener export has come to a pivotal point, which needs our careful consideration and recognition to map out what Chinese fastener will do in the next phase. 

First Concern: Fastener export features with scattering, small and low-profile

In recent years, thanks to the rapid development of fastener industry, Chinese fastener export sees dramatic expansion, which has become something someone uses to brag about. According to some statistics, China exported fasteners to 52 countries and regions in 2005, among which EU, USA and Australia are the largest importers. The total export volume increased by 26%, reaching 150 million tons, and overtook Taiwan Province to be the fastener base.

Despite of the thriving growth in Chinese fastener export, however, in the terms of exporting, many fastener enterprises were faced with problems of being scattering, small and low-profile. Based on some figures in 2005, among the 246 fastener exporting enterprises, there were 45 which exporting volume was 500 million dollars, only accounting for 18.3%. of the total and 0.6% of all Chinese fastener enterprises. This, obviously, showed that the fastener exporting enterprises were located dispersedly, most of which were small in scale, and many of them sought foreign orders individually, with low recognition of brand, management and technical content, which left them limited profit margin and less competitiveness. 

Second Concern: Low technical content

Some experts estimate that in 2010, the total global trade volume of automobile products will reach 1200 billion dollars, and the purchasing volume of fasteners in low-cost countries by multinational automobile giants would be 200 million dollars in 2007, among which 70% will flow into China. In view of this, Chinese fastener exporting must adhere to the main direction of localized manufacturing. Meanwhile, many foreign companies suggest that fasteners should be
made in China directly, which gives us a great opportunity to upgrade products levels and improve products development to set a foot in the field of automobile and construction, and to gradually alleviate and shake off the influence and control by foreign companies, which will make domestic companies take a lead in its own development.

 It¡¯s noted that most of the exported fasteners from domestic companies are some kind of low technical content, which could be replaced easily by some other lower-cost countries if we wouldn¡¯t further improve the technical content and cut cost. According to some insiders, domestic fastener companies must take technology, service and cost as their core task, building up comprehensive competitiveness featured with moderate industry scale, characteristic service and low cost

Third Concern: Foreign capital flows back

In the past few years, many multinational giants from USA, Japan, South Korea and Germany rushed to China to open their own factories. Up until now, there are over 200 foreign-invested factories here, with the total assets accounting for 25% of Chinese fastener industry. Most of them concentrate along the coastal areas of Pearl River Delta, Yangtze River Delta and Jiaozhou Peninsula, with the main products being automobile fasteners of high added-value, high precision and high intensity, through which the overall level of our fastener industry is due to promoted and improved.