Page 214 - 2017 White Paper
P. 214
7 White Paper on the Business Environment in China
2.3 Manufacturing
Machinery upgraded our products and strengthened the overall
manufacturing industry” (Zheng 2008), and offering
Xinhua reports that between 2001 and energy-saving and pollution reduction equipment,
2010, the total output value of the infrastructure equipment and digitally-controlled
machinery industry increased from 1.44 trillion to 14.38 machine tools as examples of areas in which the domestic
trillion yuan, a sustained growth rate of 25 percent. In the sector has made great technological progress.
same period, the number of enterprises in the industry
grew from 34,000 holding 2 trillion yuan in assets to By the end of that year, the PRC’s export volume of
107,000 holding 10 trillion in assets in 2010 (National machinery and electrical equipment was the second-
Population and Family Planning Commission of China largest in the world; a year later it was the largest (China
2011). Daily 2010b). Foreign-invested firms’ exports accounted
for 69.4 percent of that year’s total (which exports were
According to the National Bureau of Statistics of worth approximately $494 billion) (Ibid.).
China’s China Statistical Yearbook 2009, the manufacture
of machinery and electrical equipment1 by state-owned While the machinery sector continued to grow,
enterprises in 2008 resulted in an aggregate 14.8 trillion 2011 saw expectations of a foreign trade deficit in
yuan in revenue from principal business activities across the field attributed to the rapid growth of machinery
120,106 enterprises above a designated size2, including imports according to CMIF as including rising input
state-owned, privately-held domestic and foreign- costs, difficulties in financing and increased labor costs.
invested firms (China Statistics Press 2009). Nevertheless, total sales were predicted to expand by
more than 10 percent (Xinhua 2011a).
The 59,244 foreign-invested3 enterprises included
in the data alone accounted for 4 trillion of the sectors’ The same year, Chief Director Zhang Ji of the Ministry
total revenue while employing 7.1 million of the total of Commerce’s Department of Mechanical, Electronic
labor force of 26.0 million individuals (approximately 27 and Hi-Tech Industry noted that “the proportion of high-
percent of the total) (China Statistics Press 2009). tech products in the country’s exports of machinery and
electronic products remains small,” and that “[The PRC]
In early 2008, the Vice Director of the China Machinery still relies on imports of much high-end equipment”
Industry Federation (CMIF) described the strong growth (China Daily 2010a).
of the machinery industry, saying that, “[We have]
This perceived deficiency resulted in “huge incentives
1 The “China Statistical Yearbook” includes six industrial sectors which for innovation and R&D” and the encouragement that
we group under the title “machinery and electrical equipment”: “as the country expands infrastructure construction,
“Manufacture of General Purpose Machinery”, “Manufacture of machinery firms should take the opportunity to upgrade
Special Purpose Machinery”, “Manufacture of Transport Equipment”, their technology and raise their competitiveness”. It was
“Manufacture of Electrical Machinery and Equipment”, “Manufacture also mentioned that the government would be actively
of Communication Equipment, Computers and Other Electronic integrating research organizations into the industrial
Equipment” and “Manufacture of Measuring Instruments and product development cycle and adjusting tax policy
Machinery for Cultural Activity and Office Work”. Figures from the to “encourage machinery exports and imports of key
“China Statistical Yearbook” quoted hereafter are aggregates of values technologies and machinery parts” (Xinhua 2009).
from those six categories in the original publication.
Following up on these changes, Chairman of the
2 Here,“above a designated size”is qualified as enterprises with annual National Committee of the Chinese People’s Political
revenue from principal business of greater
than 5 million yuan.
3 This category includes enterprises funded from Hong Kong, Macau
and Taiwan.
214
2.3 Manufacturing
Machinery upgraded our products and strengthened the overall
manufacturing industry” (Zheng 2008), and offering
Xinhua reports that between 2001 and energy-saving and pollution reduction equipment,
2010, the total output value of the infrastructure equipment and digitally-controlled
machinery industry increased from 1.44 trillion to 14.38 machine tools as examples of areas in which the domestic
trillion yuan, a sustained growth rate of 25 percent. In the sector has made great technological progress.
same period, the number of enterprises in the industry
grew from 34,000 holding 2 trillion yuan in assets to By the end of that year, the PRC’s export volume of
107,000 holding 10 trillion in assets in 2010 (National machinery and electrical equipment was the second-
Population and Family Planning Commission of China largest in the world; a year later it was the largest (China
2011). Daily 2010b). Foreign-invested firms’ exports accounted
for 69.4 percent of that year’s total (which exports were
According to the National Bureau of Statistics of worth approximately $494 billion) (Ibid.).
China’s China Statistical Yearbook 2009, the manufacture
of machinery and electrical equipment1 by state-owned While the machinery sector continued to grow,
enterprises in 2008 resulted in an aggregate 14.8 trillion 2011 saw expectations of a foreign trade deficit in
yuan in revenue from principal business activities across the field attributed to the rapid growth of machinery
120,106 enterprises above a designated size2, including imports according to CMIF as including rising input
state-owned, privately-held domestic and foreign- costs, difficulties in financing and increased labor costs.
invested firms (China Statistics Press 2009). Nevertheless, total sales were predicted to expand by
more than 10 percent (Xinhua 2011a).
The 59,244 foreign-invested3 enterprises included
in the data alone accounted for 4 trillion of the sectors’ The same year, Chief Director Zhang Ji of the Ministry
total revenue while employing 7.1 million of the total of Commerce’s Department of Mechanical, Electronic
labor force of 26.0 million individuals (approximately 27 and Hi-Tech Industry noted that “the proportion of high-
percent of the total) (China Statistics Press 2009). tech products in the country’s exports of machinery and
electronic products remains small,” and that “[The PRC]
In early 2008, the Vice Director of the China Machinery still relies on imports of much high-end equipment”
Industry Federation (CMIF) described the strong growth (China Daily 2010a).
of the machinery industry, saying that, “[We have]
This perceived deficiency resulted in “huge incentives
1 The “China Statistical Yearbook” includes six industrial sectors which for innovation and R&D” and the encouragement that
we group under the title “machinery and electrical equipment”: “as the country expands infrastructure construction,
“Manufacture of General Purpose Machinery”, “Manufacture of machinery firms should take the opportunity to upgrade
Special Purpose Machinery”, “Manufacture of Transport Equipment”, their technology and raise their competitiveness”. It was
“Manufacture of Electrical Machinery and Equipment”, “Manufacture also mentioned that the government would be actively
of Communication Equipment, Computers and Other Electronic integrating research organizations into the industrial
Equipment” and “Manufacture of Measuring Instruments and product development cycle and adjusting tax policy
Machinery for Cultural Activity and Office Work”. Figures from the to “encourage machinery exports and imports of key
“China Statistical Yearbook” quoted hereafter are aggregates of values technologies and machinery parts” (Xinhua 2009).
from those six categories in the original publication.
Following up on these changes, Chairman of the
2 Here,“above a designated size”is qualified as enterprises with annual National Committee of the Chinese People’s Political
revenue from principal business of greater
than 5 million yuan.
3 This category includes enterprises funded from Hong Kong, Macau
and Taiwan.
214
