China's foreign trade value stood at 11 trillion yuan in the first half of 2016, a drop of about 3 percent year-on-year. While both exports and imports slumped slightly, the country is shifting to an export policy that focuses on more value-added products.
This is not a machine that many countries can produce. The giant tunneling monster is produced at home by Northern Heavy Industries Group.
Based in Shenyang, the company employs over 10,000 people and the tunnel boring machines it produces are some of the world’s best. Its recent developments are in line with China's new export strategy – a shift to higher value added products.
"When I first joined the company 9 years ago, over 70 percent of the components and technologies were from foreign countries. Today, that percentage is overturned. We hold the core technologies in products sold worldwide," said Bu Rui, general manager, Northern Heavy Industries Group TBM Company, Shenyang.
Just like this tunnel boring machine, China has started exporting more advanced products. It is part of the country's new export policy to transform the country from a low-grade consumer-goods manufacturer into a top exporter of higher-value-added products.
China’s export goals are ambitious. It expects to export more aviation, transportation and IT technology and products. And the same time, continue with an industrial upgrade at home. Changes are happening in the logistics sector to facilitate a better "Made in China" attitude -- like at the emerging port of Yingkou.
"If we do the math on the cost of land and ocean freight between Guangzhou to Yingkou, the ocean freight option will cut shipping costs by up to 30 percent. Exporters can then take full advantages of our railway logistics service to Europe via Russia," said Lu Zheng, logistics manager, Yingkou Port, Liaoning Province.
Connectivity is a prerequisite for boosting exports and imports numbers. And the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiative will not be limited by geography.
"Our aim is to develop the port into a key transit hub that connects China's exporters in the Pearl River Delta and Yangtze River Delta regions to Russia and Europe with our Ocean-rail combined logistics service," said Li Hezhong, director, Yingkou Port Group, Liaoning Province.
By combining connectivity with breakthrough in high-tech research and development, the idea of "Made in China" is entering a new era – one that can better match the needs and demands of its global customers.
