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Report: China Becomes Major TV Exporter TMCnet Web Editor Despite numerous trade barriers, China’s television exports will surpass its domestic shipments for the first time in 2007, said iSuppli Corp. in a market research report titled “China's Export TV Market to Surpass Domestic Production.”
According to the report, China is set to export 39.6 million televisions in 2007, compared to 38.3 million sets shipped in the domestic market. In comparison, China in 2006 had 36.8 million domestic TV shipments and 34.8 million exports.
“China’s rising exports come as a direct result of the Japanese manufacturers exiting the Cathode Ray Tube (CRT) television market in order to focus their efforts on higher-margin LCD-TVs and Plasma Display Panel (PDP) TVs,” said Kathleen Zhang, China industry analyst at iSuppli. “Due to the availability of a local supply chain and continued international demand for CRT TVs, China has taken over this market from the Japanese.”
The report said China’s strong export trade is continuing despite a decline in CRT-TV shipments to the United States, due to the fact that all TVs in this country must now include a built-in Advanced Television Systems Committee (ATSC) Digital Television (DTV) tuner, to comply with the FCC’s (News - Alert) transition to digital TV.
iSuppli believes the market for Chinese television exports will grow to 54.5 million units by 2011, managing a Compound Annual Growth Rate (CAGR) of 9.7% from 34.8 million in 2006. Domestic Chinese television shipments will grow to 45.8 million units by 2011, rising at a CAGR of 4.5% from 36.8 million units in 2006. As China transitions to LCD TVs, iSuppli believes television exports will continue to rise as OEMs shift from shipping CRTs to shipping more desirable and higher-margin flat-panel offerings.
According to the report, Chinese TV makers are now establishing factories in European Union member countries and Latin America to circumvent the high duty rates and non-tariff barriers preventing China-branded televisions from entering high volume markets in Europe and the United States.
For more details on the report, visit http://www.isuppli.com/catalog/detail.asp?id=8696.
Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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