China's transformer exports hit record high: Here we decode why
19 Jan 2026

China has witnessed a massive surge in transformer exports, raking in a record CNY 64.6 billion ($9.3 billion) in 2025.

This is nearly 36% higher than the previous year, according to customs data released yesterday.

The spike in export value comes as the world grapples with a shortage of this essential equipment for grid infrastructure.

US faces significant transformer supply gap
Supply challenges

The United States, the world's largest transformer importer, is dealing with a supply gap of nearly 30%.

This shortfall could continue into the 2030s, according to energy consulting firm Wood Mackenzie Ltd.

Chinese manufacturers are capitalizing on this situation, with increased overseas orders for modernizing aging grids and domestic investments in renewables-heavy supergrids.

Chinese companies see significant profit surges
Profit increases

Chinese companies are reaping the benefits of this transformer export boom.

Sieyuan Electric Co. reported a whopping 54% jump in last year's profit and its stocks have skyrocketed by 168% since the start of this year.

Another major player, TBEA Co, saw foreign orders surge by an impressive 66% in H1 2025 compared to the same period the previous year.

World's largest flexible UHV DC transformer unveiled
Technological advancements

State-owned China XD Electric Co, a key contractor for the country's ultra-high-voltage grid construction, has unveiled the world's largest flexible UHV DC transformer.

This advanced technology is aimed at improving long-distance transmission of renewable power from remote deserts.

The development comes amid a global grid investment boom that surpassed $480 billion for the first time in 2025, according to BloombergNEF.

AI computing and electrification drive up prices
Price surge

The rise in AI computing and electrification has doubled the lead times for power transformers since 2021, according to BloombergNEF analyst Eva Gonzalez Isla.

The average price of a single transformer exported from China in 2025 rose to CNY 205,000, about a third higher than the previous year.

In the US, where manufacturing capacity is still under pressure, prices are nearly 79% above pre-2021 levels.