China's exports of mechanical and electrical products in 2008 amounted to USD823 billion, an increase of 17% compared to 2007. Yet the findings of a survey recently conducted by China's Ministry of Commerce (MOC) indicated that the export growth of mechanical and electrical products is expected to slow down in the first half of 2009, due in large part to dwindling demand from major overseas markets.

The survey also indicated that the impact of the financial crisis on the mechanical and electrical manufacturing industry has spread from the coastal regions to inland cities, and from small and medium sized enterprizes to larger ones. According to the survey, export growth is expected to slow down sharply in 2009, and the export of some products may even start to decline. Yet the findings also showed that manufacturers with established international sales networks for their branded products have fared better than those without such networks.

Facing a daunting export outlook for 2009, it has been reported that the Ministry of Commerce will take the following seven measures to maintain steady export growth for mechanical, electrical and high-tech products.

1. Further adjust and improve policy
This measure involves export tax rebates, import and export credit, insurance and other policy instruments. These policies are expected to support exports of products with independent intellectual property rights, as well as self-branded products and high value-added and labor intensive products.

2. Concentrate on key industries and enterprises
MOC intends to support enterprizes using key technologies and R&D for common technologies to optimize export structures. MOC will put greater effort into serving such enterprizes which have already obtained new orders, are in the process of receiving new orders or have the ability of getting new orders.

3. Create public service platforms
MOC supports the construction of relevant platforms such as an automobile exporting platform and a science and technology innovation platform,  as well as platforms for technology R&D, testing & detection, product certification, information services, and training.

4. Intensify efforts on promoting important markets
MOC will organize key enterprizes by industry to enter important countries for carrying out market promotion activities. Hence more enterprizes will be encouraged to go abroad to attend or host exhibitions, register trademarks, and apply for quality certification. Enterprizes will also be prompted to develop overseas marketing networks and to set up active after-sales service networks.

5. Alleviate the difficulties of export financing for SMEs
MOC has provided guidelines for financial institutions to offer financial guarantees to SMEs, has expanded credit insurance financing scales, and has induced domestic and foreign commercial insurance companies to participate in short-term insurance operations.     

6. Support exports of large-scale integrated equipment facilities
MOC is exploring the mixed-financing solution, which combines policy-based export credit, commercial credit and international financial institution financing. MOC also intends to make full use of bilateral political, diplomatic, economic and trade mechanisms to support key equipment manufacturing industries in opening up international markets.

7. Actively expand imports
MOC will expand imports of advanced technology, key equipment and components, and will endeavor to urge the United States, Europe and other developed countries to allow more exports of relevant technology to China.