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Despite various trade barriers, iSuppli forecasts that China is set to export 39.6 million TVs in 2007, surpassing its domestic shipments for the first time with 38.3 million sets. In comparison, China in 2006 had 36.8 million domestic TV shipments and 34.8 million exports. "China’s rising exports come as a direct result of the Japanese manufacturers exiting the CRT television market in order to focus their efforts on higher-margin LCD TVs and PDP TVs," said Kathleen Zhang, China industry analyst at iSuppli. "Due to the availability of a local supply chain and continued international demand for CRT TVs, China has taken over this market from the Japanese." Entering U.S. market
However, China’s CRT TV exporters are facing increasing obstacles in penetrating the U.S. market due to new requirements for digital tuners on sets sold in that country. Starting March 1, all TVs that include a tuner must incorporate a built-in Advanced Television Systems Committee (ATSC) DTV tuner. This requirement, which will allow consumers in the United States to receive DTV signals, had a major impact on exports in Q1 as CRT shipments dropped 38 percent compared with the previous quarter and down 6 percent compared to the same quarter in 2006. Chinese OEMs are hesitating to export TVs to the U.S. market for fear of being charged high royalties that exceed $20 a set. However, China TV makers are already beginning to adjust to changed market conditions in order to preserve their rapid export growth. iSuppli believes the market for China TV exports will grow to 54.5 million units by 2011, managing a CAGR of 9.7 percent from 34.8 million in 2006. Domestic China TV shipments, on the other hand, will grow to 45.8 million units by 2011, rising at a CAGR of 4.5 percent from 36.8 million units in 2006. As China transitions to LCD TVs, iSuppli adds that TV exports will continue to rise as OEMs shift from shipping CRTs to shipping more desirable and higher-margin flat-panel offerings. Paying dues
Currently, high duty rates and non-tariff barriers are preventing all China-branded TVs from entering high-volume markets in Europe and the United States. To circumvent this, China’s TV manufacturers have begun to establish factories in European Union member countries and in Latin America in order to avoid having the label of "Made in China," despite the fact China companies are producing the sets. The ATSC royalties also represent a challenge for Chinese OEMs that want to avoid having to pay an additional fee for each set that is exported to a different country. iSuppli believes that China manufacturers have a long way to go before they can successfully sell their products under their own brand names in Europe and the United States. (() | 
