Since a long time, China's hardware industry depends heavily on exports , and therefore affected by the U.S. subprime mortgage crisis and the harsh environment abroad , the majority of export-oriented enterprises are in the state adhere to teeth .

In its research, the Deputy Secretary-General of China National Hardware Association Xin Jin said bluntly : "The current difficulties encountered in most export-oriented enterprise , which is mainly due to foreign exchange rates, changes in market demand and the impact of lower export tax rebate rate of export tax rebates in particular . reduce the rate of hand tools , locks, stainless steel products, reduced tax rate of 8% , a significant impact on export . Additionally , Guangdong and Zhejiang, some export-oriented enterprises , the product is essentially 100% of exports, but to abandon the domestic consequences when the external economic situation is not good , it is clearly manifested. to lock industry, for example , some of the very difficult situation of the export business sales , orders decreased Fair this year , only 10% of the past . Moreover, some companies in the country due to the long neglected expand market channels to establish a brand , so in the short term is difficult to find a breakthrough in the domestic market . "

" It is also worth noting that industrial development is not balanced. Stainless steel products industry, for example , compared with the south in northern China , business equipment is relatively backward , but the domestic market is relatively sound , while the South Youyi export-oriented, export case the case of resistance , although the current domestic upstream steel industry product sales prices upside down , but the stainless steel products industry does not achieve profitability , indicating lack of corporate patent ability . "

 But at the same time , another gold Deputy Secretary-General remarks , let us see the hardware industry, the light of hope , " the current hardware industry as a whole is characterized by: an increase of the overall cost , market disruption , the general slowdown in the growth rate , substantial profits decline , business differentiation although the overall situation is not optimistic, but they are some bright spots , " said Xin Jin highlights mainly refers to the following two conditions . :
First, some with their own brand of medium- enterprise development situation very well. In the tool industry, for example : to produce the toolbox , kits products Ningbojiejie companies, products exported to the U.S. increased by 40 %. It is understood , has been able to achieve in the environment is not a good situation such good results, partly because the company can properly deal with the difficulties , positive attitude to deal with ; partly because the company's sales channels more reasonable, the export ratio balanced, does not simply rely on overseas markets ; addition, export , companies are more proactive way of avoiding the use of negotiated exchange rate risk.

Second, some have scale advantages of large enterprises despite falling profits , but on the whole, the situation is more stable production and sales , with the strength to survive the crisis .