Growth of Machinery Sectors in China – Where Future Lie?

China has been competing with the world's superpowers and has eventually become one. Several factors have played a role in making China the 3rd superpower in the world. One of the reasons for its rapid growth is its industrialization. The Chinese machinery industry has been doing wonders with its high-tech advancements and innovations. They have been continuously introducing high-tech machines and exporting them to most of the world. China is undergoing continuous rapid growth, and its machine industry is a significant factor behind it.

Impact of Government Support

China's machine industry is constantly getting immense support from its government. Several structural reforms are introduced from time to time. Efforts are being made to get the import services. China's government receives the high-tech and latest manufacturing equipment by investing in foreign countries. The introduction of such structural reforms has resulted in massive success.

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The growth rate of the machinery sector has been almost 25% for the past ten years. Benefiting from China's great domestic demand driven by the significant investments by the government and industrialization process, China has become the top-most machinery manufacturer in the world in terms of overall output value. It is expected that the ongoing rapid urbanization, industrialization, and process will continue to be the growth drivers in the future.

Different China Machinery Sectors

Agricultural Machinery

With the help of its government investments, China's agricultural machine industries excel in manufacturing and exporting different Diesel engines, tractors, and implements such as combine harvesters, animal husbandry equipment, agricultural products processing machinery, irrigation, and drainage pumps, and plant protection machinery. Because of the supportive tax systems and better Research and Development, the agricultural industries have made significant progress. They will do the same in the future if they also work on mobility and better intelligent solutions.

Construction Machinery

Though the Chinese construction industry manufactures and exports several construction equipments, such as excavators, scrapers, graders, loaders, bulldozers, truck cranes, forklifts, industrial vehicles, piling machinery, rock drilling machinery, road surface compacting machinery, as well as pneumatic tools. But China still has to import high-pressure hydraulic components and sophisticated crawler excavators. Hence, the value of imported construction machinery decreased dramatically by 63% from 2011 to 2012. This can also be because of some restrictive policies in the construction markets aiming at limiting the building of new residential apartments and houses. Still, after 2011, there was a decrease in the value of imported machinery.

Heavy Machinery

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The heavy machinery includes metallurgical, mining, lifting, and transporting machinery. Lifting and transporting machinery is considered the most significant source of prime operating revenue (95.23 EUR billion) and profit (7.47 EUR billion) in the heavy machinery industry. China imports only 47.5 EUR billion of transport and lifting machinery out of 54.25 EUR billion imports of heavy machinery. Also, 134.34 EUR billion of the 161.21 EUR billion exported heavy machinery are raising and transporting machinery, which they ship 2 to 3 times as much as imports.

Machine Tools

China is the importer of large quantities of middle- and high-end machine equipment, such as CNC components, jigs and fixtures, and other parts for metal-forming machine tools. According to the article published by Filip Geerts: Briefing on the machinery sector in China 2018, the imports of machine tools in China in 2015 increased to 16.1 EUR billion, equivalent to a 10.8% yearly growth rate. China imported almost 7.98 EUR billion of machine devices, 11.1% more than in 2014. It is expected that machine tool import value will continue to grow, sustained by imports from Germany, Japan, Taiwan, Italy, and South Korea.

Stats of Machine Implements

Also, in 2015, there were 5,656 manufacturers of machinery implements in China, 81.7% of which were privately owned. In 2014, the stats were 80.6%. The manufactured machines in China include foundry equipment, metal-cutting & metal forming machine tools, woodworking machines, abrasives, grinding equipment, measuring and cutting tools, electric apparatuses for machine tools, and machine tool attachments.

Other Sectors

Several other sectors are running very well due to the proper support from the Chinese government. The other China machinery sectors include power generating machinery, general petrochemical machinery, and food and packaging machinery. These industries are doing very well with imports and exports.

2025 Planning

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China is planning novel technological breakthroughs that it will introduce worldwide by 2025. This includes:

1. Advanced rail equipment

2. Advanced agriculture and aerospace equipment

3. Advanced marine equipment and high-tech vessels

4. Novel Agricultural machinery and technology

5. Aviation and aerospace equipment with innovations

6. High-end medical and biopharmaceutical equipment

7. Integrated circuits and new IT technology

8. High-end manufacturing control machinery and robotics

9. High-tech electrical equipment

10. Low and new-energy vehicles

11. New and advanced materials

Apr 8,2021

Osten Oliver

Growth Of Machinery Sectors In China – Where Future Lie?

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