In first half of 2007, China turned out 1.099 million tons as US$1.29 billion worth of fasteners export, up 30.82% from the year before and securing it one quarter of the global market, the highest among Chinese-made hardware parts.

Despite the energy crunch and rising materials costs, China's fastener industry continued to barrel ahead in recent years. During the 2001-2005 periods, output in the segment grew at an average annual clip of 14.32%; revenue rose 23.07%; export volume increased 24.91%; and exports jumped in value by 31.95%.

From 2001, the Chinese fastener industry has grown rapidly. Domestic shipment volume has reached 2-2.4 million tons annually, while exports have hit 1.5-1.8 million tons. Industry competition has been cruel and price wars are rampant as companies vie on brands, technology, online marketing, service, and management. It is expected that in the short term, the industry will develop in the following way:

1. Foreign trade will become major growth driver for the industry
Benefiting from the continuously growing demand for fastener products in the global market, exports have accounted for 38% in volume and 47% in value of the Chinese fastener industry's total output. With its increasingly large share, the export business has become the major growth driver for the industry.

2. Further industrial concentration
Four major production bases are emerging in Ningbo, Wenzhou, Yongnian, and Jiaxing, each with its particular advantages and niches and each characterized by intense competition between state, private, and joint-venture enterprises.

3. Brand building the key to growth
Having broken through their bottlenecks and achieved strong sales performance in both the domestic and overseas markets, many companies with brand products are focusing more of their promotional effort on such products not only in China but in overseas markets as well. Although such efforts are unlikely to produce short-term gains, it is an essential strategy for the long-run competitive strength of Chinese fastener makers.

4. Independent effort on R&D
Enterprises have started to emphasize talent cultivation. In addition, many have established strategic partnership with their peers via joint investments or cross shareholding, effectively altering the competitive landscape in the Chinese fastener industry.