China’s power equipment firms ride AI-driven boom amid demand from US, emerging markets
Chinese suppliers gain from US shortfalls and megaprojects in Latin America, Asia and the Middle East
“The US buys products from Japan and South Korea instead of China amid geopolitical tensions,” said Pierre Lau Hin-tat, China equity strategist and head of Asian utilities and clean energy research at Citigroup Global Markets. “Now the pipeline for Japanese and Korean firms is as long as three years, so companies from emerging markets turn to mainland suppliers.”
Lau added that the upcycle for Chinese suppliers would be sustained “as long as Trump remains the person in charge”.
China exported US$7.3 billion worth of transformers and US$4.3 billion worth of high-voltage gas-insulated switchgears (GIS) in the first 10 months of the year, up 37.8 per cent and 28.5 per cent, respectively, from a year earlier. That compares with a 5.3 per cent rise in overall outbound shipments.