Page 198 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
heavily subsidized its industry and wages were extremely Construction Machinery
low, making the country attractive to foreign companies
and investment. Manufacturing was slowing in China for China is the largest manufacturer of construction
several reasons. As mentioned in last year’s White Paper, machinery around the world, occupying 12 seats
changes in government policy consolidated control and among the world’s top 50 machinery enterprises.
decreased foreign subsidies. The yuan strengthened Accomplishments include the 4,000-ton jack platform
as the US dollar softened, and China faced increased that can make a 4.5-meter move up within five hours,
geographic competition. Even many Chinese investors 12 production lines that each can produce 15,000 tons
moved their money to Africa. The economic deceleration of cements every day, and elevators that can lift ships in
lasted until 2016 while at the same time creating a just 40 minutes. China is one of the four countries that
stronger Chinese consumer market. By 2015, the service can produce a kind of pump truck with a 47-meter-long
sector became responsible for more than 50 percent of arm whose strength can reach 1,800 MPs. The ultrafort
China’s GDP. The overall GDP growth raised one tenth steel for the truck was independently developed by
of a percent—from 6.7 percent in 2016 to 6.8 percent in China. It is also expected to provide support for the safe
2017—that on face value doesn’t seem really big until construction of almost 70 percent high-rise building
you realize just how really big China is. over 300 meters around the world. Loaders are important
machinery to evaluate the strength of a country’s
China’s economy growth despite a weakened engineering construction. China has developed a
manufacturing industry is a strong positive indicator of loader for plateaus that outperformed the rest of the
where China’s economy is heading. While the country world. Installed with torque converters of independent
is still far off from becoming a saturated market, the intellectual property, such loaders can scoop and load
transition to a consumer-based economy proves that a maximum of 1,400 tons within an hour. The self-
China has entered an important inflection point. The developed full-face tunnel-boring machine, also known
strength of the Chinese consumer will continue to as “underground aircraft carriers”, is another witness
outpace the dwindling manufacturing industry and of China’s strength in manufacturing construction
propel the economy forward. As the economy in China equipment. The huge machinery, 230-meter-long with
continues to mature in the coming year, we can expect an a 7-meter diameter, has conquered a challenge that
overall positive outlook. It will be pivotal for US companies haunted the global industry for half a century. Thanks
to understand the current transition if they want to grow to such world-class technology, the China-made tunnel-
their presence and offering in Asia (Duguay). boring machine has won two thirds of the market share
in the globe. The 4,000-ton crawler crane, the concrete
Factory Emission pump truck with a 101-meter carbon fiber arm, the
5,200-ton high-level slewing tower crane and some
China issued an updated management guideline other heavy machines are also the contributors helping
to regulate its pollutant emission permit system in China to the first club of construction machinery (Liu).
January 2018. The updated guideline highlights the
responsibilities of companies including the need to The demand in the construction and machinery
conduct regular monitoring and release information. If market is oriented by investments in fixed assets like the
a company is caught discharging pollutants without a real estate and infrastructure. When such investments
permit, it could be required to suspend production or increase, the demand for construction machinery will
shut down, and fork over a fine of up to 1 million yuan follow the step. Among the demand in sub-markets,
(Zheng, China Updates). Beijing also launched a survey the real estate accounts for 40 percent, infrastructure
of polluters in March 2018. The survey targeted data contributes to 40 percent, energy and mining make
from 2017 and helped set up a database of key polluters. up 10 percent and manufacturing takes up 10 percent.
The data included their number and distribution in the China’s whole set of construction machinery products
industrial, agricultural, and residential sectors as well are mainly exported to countries and regions excluding
as the discharge and treatment of pollutants (Xinhua, Europe, the US, Japan, Korea and Australia, while the
Beijing Starts). machinery parts are mainly exported to the US, Japan,
Australia and South Korea. In 2017, the export value
reached US$20.1 billion, with an increase of 18.5 percent
from 2016, and the trade surplus were US$16.02 billion.
198
heavily subsidized its industry and wages were extremely Construction Machinery
low, making the country attractive to foreign companies
and investment. Manufacturing was slowing in China for China is the largest manufacturer of construction
several reasons. As mentioned in last year’s White Paper, machinery around the world, occupying 12 seats
changes in government policy consolidated control and among the world’s top 50 machinery enterprises.
decreased foreign subsidies. The yuan strengthened Accomplishments include the 4,000-ton jack platform
as the US dollar softened, and China faced increased that can make a 4.5-meter move up within five hours,
geographic competition. Even many Chinese investors 12 production lines that each can produce 15,000 tons
moved their money to Africa. The economic deceleration of cements every day, and elevators that can lift ships in
lasted until 2016 while at the same time creating a just 40 minutes. China is one of the four countries that
stronger Chinese consumer market. By 2015, the service can produce a kind of pump truck with a 47-meter-long
sector became responsible for more than 50 percent of arm whose strength can reach 1,800 MPs. The ultrafort
China’s GDP. The overall GDP growth raised one tenth steel for the truck was independently developed by
of a percent—from 6.7 percent in 2016 to 6.8 percent in China. It is also expected to provide support for the safe
2017—that on face value doesn’t seem really big until construction of almost 70 percent high-rise building
you realize just how really big China is. over 300 meters around the world. Loaders are important
machinery to evaluate the strength of a country’s
China’s economy growth despite a weakened engineering construction. China has developed a
manufacturing industry is a strong positive indicator of loader for plateaus that outperformed the rest of the
where China’s economy is heading. While the country world. Installed with torque converters of independent
is still far off from becoming a saturated market, the intellectual property, such loaders can scoop and load
transition to a consumer-based economy proves that a maximum of 1,400 tons within an hour. The self-
China has entered an important inflection point. The developed full-face tunnel-boring machine, also known
strength of the Chinese consumer will continue to as “underground aircraft carriers”, is another witness
outpace the dwindling manufacturing industry and of China’s strength in manufacturing construction
propel the economy forward. As the economy in China equipment. The huge machinery, 230-meter-long with
continues to mature in the coming year, we can expect an a 7-meter diameter, has conquered a challenge that
overall positive outlook. It will be pivotal for US companies haunted the global industry for half a century. Thanks
to understand the current transition if they want to grow to such world-class technology, the China-made tunnel-
their presence and offering in Asia (Duguay). boring machine has won two thirds of the market share
in the globe. The 4,000-ton crawler crane, the concrete
Factory Emission pump truck with a 101-meter carbon fiber arm, the
5,200-ton high-level slewing tower crane and some
China issued an updated management guideline other heavy machines are also the contributors helping
to regulate its pollutant emission permit system in China to the first club of construction machinery (Liu).
January 2018. The updated guideline highlights the
responsibilities of companies including the need to The demand in the construction and machinery
conduct regular monitoring and release information. If market is oriented by investments in fixed assets like the
a company is caught discharging pollutants without a real estate and infrastructure. When such investments
permit, it could be required to suspend production or increase, the demand for construction machinery will
shut down, and fork over a fine of up to 1 million yuan follow the step. Among the demand in sub-markets,
(Zheng, China Updates). Beijing also launched a survey the real estate accounts for 40 percent, infrastructure
of polluters in March 2018. The survey targeted data contributes to 40 percent, energy and mining make
from 2017 and helped set up a database of key polluters. up 10 percent and manufacturing takes up 10 percent.
The data included their number and distribution in the China’s whole set of construction machinery products
industrial, agricultural, and residential sectors as well are mainly exported to countries and regions excluding
as the discharge and treatment of pollutants (Xinhua, Europe, the US, Japan, Korea and Australia, while the
Beijing Starts). machinery parts are mainly exported to the US, Japan,
Australia and South Korea. In 2017, the export value
reached US$20.1 billion, with an increase of 18.5 percent
from 2016, and the trade surplus were US$16.02 billion.
198
