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 data from 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 reaches 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? From a direct perspective, the booming global demand is driving the 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 and deployment; overseas data centers and computing infrastructure are rapidly expanding. These multiple demands are collectively boosting transformer exports.

Looking deeper, under the current 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? It’s worth examining through three keywords. From these, we can not only understand the reasons behind the hot sales but also the deeper logic of “Made in China” confidently entering the global stage.

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

Product competitiveness depends not only on the product itself but also on the underlying industrial 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, enables Chinese companies to respond quickly to market changes, with delivery cycles much shorter than the 18 months to 2 years typical of European and American manufacturers.

The product competitiveness brought by a complete industrial system is not unique to transformers. For example, from high-precision gear reducers and high-performance servo systems to intelligent controllers, the robotics supporting industry is becoming more complete. Robots made in the Yangtze River Delta now feature 100% localized 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 to build a safe and efficient industrial and supply chain is the foundation for companies to “ride the wave” in international markets and the solid base for China’s manufacturing to lead the trend.

2. “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 plant oil transformers to meet environmental requirements in Europe and America; designing compact, high-efficiency solid-state transformers to suit data center applications… Whatever the market needs, Chinese transformer companies break through barriers by customizing and specializing, rapidly growing 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 market trends and focusing on demand can open broader markets for Chinese manufacturing.

3. “Reliability,” which benefits from domestic market scenarios.

Scenes are an important and scarce resource for innovation. Upgrades to domestic power grids and the construction of computing infrastructure provide “training grounds” for transformer companies to overcome technical challenges. During China’s 14th Five-Year Plan, the State Grid 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 management and logistics support the rapid development of low-altitude economy industries; complex environments like high-altitude, desert, and low-wind conditions push wind power companies to develop customized solutions… China’s large-scale market and rich application scenarios allow Chinese manufacturing to thoroughly verify reliability and practicality before going global.

Looking back at the hot overseas sales of transformers, amidst 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 towards new and better directions, we can always remain invincible.

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

(Source: People’s Daily)