Ma­chin­ery mak­ers rid­ing B&R to big growth

China Daily (Hong Kong) - - BUSINESS - By ZHONG NAN zhong­nan@chi­

Chi­nese ma­chin­ery man­u­fac­tur­ers’ rev­enue is ex­pected to grow 8 per­cent to 26.51 tril­lion yuan ($3.94 tril­lion) this year on the back of the Belt and Road, or B&R, Ini­tia­tive, po­ten­tially re­vers­ing two years of ex­port slow­down, in­dus­try of­fi­cials said on Tues­day.

In the first half of this year, ex­ports of Chi­nese prod­ucts such as au­to­mo­biles, con­struc­tion ma­chin­ery and equip­ment for min­ing, oil drilling and power in­dus­try grew nearly 7 per­cent yearon-year to $193.5 bil­lion, ac­cord­ing to the China Ma­chin­ery In­dus­try Fed­er­a­tion.

Their im­ports in­creased al­most 12 per­cent to $142.7 bil­lion.

Over­all sales rev­enue of ma­chin­ery man­u­fac­tur­ers reached 12.51 tril­lion yuan, up 11.6 per­cent year-on-year.

Fixed-as­set in­vest­ment in the sec­tor grew by 4.61 per­cent to 2.35 tril­lion yuan.

Last year, ex­ports dropped 3.6 per­cent year-on-year to $374.8 bil­lion, while im­ports fell nearly 2 per­cent to $272.7 bil­lion.

In 2015, ex­ports dropped 3 per­cent year-on-year to $388.76 bil­lion, while im­ports fell 14 per­cent to $277.75 bil­lion.

In the key con­struc­tion ma­chin­ery sec­tor, ex­ca­va­tor out­put surged 70 per­cent year-on-year in the first half of this year, in­di­cat­ing the sec­tor has en­tered an­other re­place­ment cy­cle af­ter its last peak year in 2011.

Ex­ca­va­tor man­u­fac­tur­ers do not have much stock af­ter a five-year pe­riod of con­sump­tion, in­dus­try in­sid­ers said.

Chen Bin, ex­ec­u­tive vi­cepres­i­dent of the Bei­jing­based CMIF, said do­mes­tic ma­chin­ery man­u­fac­tur­ers have made no­table tech­no­log­i­cal break­throughs.

The achieve­ments will help them to sup­ply prod­ucts to big-ticket projects like smart cities, nu­clear power plants, ul­tra-high-volt­age sup­ply lines, hy­dro-elec­tric plants and wind power farms.

The fed­er­a­tion said the con­struc­tion ma­chin­ery seg­ment will con­tinue to grow ro­bustly in the se­cond half of this year, thanks to China’s on­go­ing rail­road, high­way, air­port projects in lower-tier cities as well as ur­ban­iza­tion.

Growth op­por­tu­ni­ties will also come from the in­creas­ing de­mand for ex­ca­va­tors, bull­doz­ers, pipe-lay­ers, road rollers and wheel load­ers in the B&R mar­kets.

Such de­mand is par­tic­u­larly strong in fast-grow­ing mar­kets such as Saudi Arabia, Ethiopia, Kenya and Brazil.

The B&R mar­kets’ fo­cus is on sus­tain­able devel­op­ment, ur­ban­iza­tion, in­dus­tri­al­iza­tion, ser­vices and telecom­mu­ni­ca­tions.

Chen said: “Chi­nese con­struc­tion ma­chin­ery mak­ers have al­ready shifted their fo­cus from sell­ing their prod­ucts to de­vel­op­ing mar­kets through deal­er­ships to build­ing af­ter-sales ser­vice cen­ters and staff train­ing cen­ters over­seas. They are also print­ing user man­u­als in French, Por­tuguese and Rus­sian.

“Both do­mes­tic and global mar­kets are no longer dom­i­nated by for­eign com­pa­nies in many im­por­tant high-tech fields. All the core parts for the coun­try’s new-gen­er­a­tion Hua­long One nu­clear re­ac­tor are made by do­mes­tic play­ers.”

Zhao Chi, sec­re­tary-gen­eral of the CMIF, said: “As many de­vel­oped coun­tries adopted trade pro­tec­tion­ism mea­sures to pro­tect their own in­dus­tries, di­ver­si­fy­ing mar­ket chan­nels in coun­tries and re­gions par­tic­i­pat­ing in the Belt and Road Ini­tia­tive has helped com­pa­nies ease ex­port pres­sure.

“Weak do­mes­tic de­mand for ma­chin­ery from in­dus­tries like steel, coal, power, oil re­fin­ing and chem­i­cals will be a long-term phe­nom­e­non as all of th­ese sec­tors read­just their prod­uct devel­op­ment fo­cus.”


A tech­ni­cian op­er­ates a high-tech pro­duc­tion line in Xuan­hua, He­bei prov­ince.

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