People's Daily Commentary: Why Are Transformers Selling Well Overseas

The seemingly inconspicuous transformer has now become a hot commodity in overseas markets. According to the General Administration of Customs, by 2025, the total export value of transformers will exceed 64.6 billion yuan, a year-on-year increase of nearly 36%. The average export price per transformer reached 205,000 yuan, up about one-third compared to last year. Many transformer companies have sufficient orders on hand, with some orders for data centers already scheduled through 2027.

Why are transformers so popular overseas? The direct reason is the booming global demand, which has given a boost to the transformer industry: developed countries in Europe and America are entering a renewal cycle for their power grid infrastructure; emerging markets are increasing electricity consumption and raising the proportion of clean energy generation, accelerating grid investment; overseas data centers and computing infrastructure are rapidly expanding. Multiple demands are stacking up, driving export growth.

Looking deeper, under this trend, many companies from different countries compete on the same stage. Why has China stood out and remained the world’s largest producer of transformers? Let’s consider three key words. From these, you can not only understand the reasons behind the hot sales but also grasp the deeper logic of “Made in China” confidently entering the world stage.

First is “Speed,” which stems from a tightly integrated supply chain.

Product competitiveness depends not only on the product itself but also on the underlying supply chain. From raw materials like copper and aluminum to components such as iron cores and tap changers, China has established the most complete transformer manufacturing system in the world, with about 60% of global capacity. The close integration of upstream and downstream, along with independent control of the supply chain, allows Chinese companies to respond quickly to market changes, with delivery cycles much shorter than the 18 months to two years typical of European and American manufacturers.

The product competitiveness brought by a complete industrial system is not unique to transformers. For example, the robotics industry, including high-precision gear reducers, high-performance servo systems, and intelligent controllers, is becoming increasingly mature. Robots made in the Yangtze River Delta region now feature 100% domestically produced core components and have reduced costs by 40%. In 2025, China’s industrial robot exports will surpass imports for the first time.

Industrial competition cannot be fought alone. Relying on scale and supporting advantages, building a safe and efficient industrial and supply chain is the foundation for companies to “ride the wave” in the international market and the solid base for China’s manufacturing to lead the trend.

Second is “Adaptability,” which comes from precise understanding and fulfillment of market needs.

Innovation is reflected not only in technological upgrades but also in the dynamic adaptation of products to market demands. For example, developing environmentally friendly transformers using vegetable oils for the European and American markets; designing compact, high-efficiency solid-state transformers to meet data center needs… Whatever the market requires, Chinese transformer companies break through barriers by customizing and specializing, growing rapidly by solving customer pain points.

Foreign businessmen often comment that Chinese entrepreneurs have “a keen sense of smell”—they can quickly spot market opportunities. In small appliances, multi-purpose heaters that can heat tea on top and provide warmth on all sides are popular in Japan and Korea; in heavy machinery, cranes equipped with desert tires or fire extinguishers for Mars are favored in the Middle East. These examples prove a simple truth: following the market and focusing on demand can open broader markets for Chinese manufacturing.

Third is “Reliability,” thanks to the empowerment of domestic market scenarios.

Scenes are an important and scarce resource for innovation. Upgrading the domestic power grid and building computing infrastructure have provided transformer companies with a “training ground” to overcome technical challenges. During the 14th Five-Year Plan period, the State Grid Corporation completed and put into operation the “Eight Crosses and Eight Directs” ultra-high-voltage projects, helping China gain technological dominance in ultra-high voltage and smart transformers.

Various scenarios such as urban governance and logistics support the rapid development of low-altitude economy industries; complex environments like high-altitude, desert, and low-wind areas push wind power companies to develop customized solutions… China’s large-scale market and rich application scenarios allow Chinese manufacturing to thoroughly test reliability and practicality before going abroad.

Looking back at the hot overseas sales of transformers, amid the rapid changes and uncertainties in the external environment, the industry’s solid foundation, innovative drive, and scenario advantages give Chinese companies ample confidence to participate in international competition. This also reminds us that no matter how trends shift, as long as we strengthen our core capabilities, continuously grow our strength, and promote industry development in new and better directions, we can always stay undefeated.

Original title: Why Are Transformers So Popular Overseas (People’s Daily Commentary)

(Source: People’s Daily)