TBEA(SH:600089) Xin Lang Cai Jing·2025-11-16 12:15Core Viewpoint - The article highlights the significant shift in perception and reliance on Chinese manufacturing, particularly in the transformer industry, illustrating how Western countries, especially the U.S. and EU, have become increasingly dependent on Chinese products despite previous criticisms of their quality and reliability [1][3][12]. Group 1: Market Dynamics - In the first three quarters of this year, China's transformer exports surged by 57.9% year-on-year, indicating a growing reliance on Chinese manufacturing by Western countries [3][7]. - The export value of Chinese transformers is projected to exceed $18 billion in 2024, with a year-on-year growth of 42.3% [7][8]. - The U.S. imported transformers worth $4.72 billion from China last year, nearly doubling from the previous year, while the EU countries, particularly Germany, France, and the Netherlands, are also significantly increasing their orders [8][12]. Group 2: Technological Advancements - China now holds over 70% of the global transformer production capacity, excelling not only in quantity but also in advanced technology, offering products that are 40% cheaper and with faster delivery times compared to Western manufacturers [4][5][14]. - The technology behind China's transformers, such as ultra-high voltage and smart grid technologies, has been developed through extensive real-world applications, showcasing a depth of experience that Western companies lack [9][13]. Group 3: Supply Chain and Production Efficiency - The complete supply chain for transformer production is well-established in China, from raw material procurement to assembly and testing, allowing for greater efficiency compared to Western counterparts who rely on imports for components [14][19]. - Chinese manufacturers can produce transformers at a cost that allows them to sell three units for the price of one produced in the U.S., highlighting the competitive advantage in production costs [5][12]. Group 4: Industry Perception and Future Outlook - The article emphasizes that the perception of "Made in China" has evolved from being viewed as cheap and inferior to being recognized as indispensable and high-quality, particularly in critical infrastructure sectors [4][12][18]. - Despite political tensions and sanctions, the demand for Chinese transformers remains strong, indicating that market realities often outweigh political rhetoric [19].