Page 180 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
Market Trends Beijing, Shanghai, Tianjin, Hebei Province and
Guangdong Province now have to comply with
In 2019, although the economic operation of the what is believed to be one of the world’s strictest
machinery industry was difficult and the pressure rules on automobile pollutants. In Beijing, all new
was large, positive factors still existed. The growth buses and other heavy-duty diesel vehicles follow
rate of the machinery industry sharply fell to 4.2 the new emission rules in 2020, while all new
percent in the first half of the year. It is not only vehicles are expected to follow suit starting in
4.2 percentage points lower than the same period 2020. All existing vehicles on the roads are obliged
last year, but also lower than the national average to meet the previous “China V” emission standards.
for industry and manufacturing in the same period. Emissions from some 6.2 million vehicles were
The low level of the main economic indicators for responsible for 45 percent of Beijing’s concentration
the machinery industry has been strongly affected of small, breathable particles known as PM2.5, a
by the decline of the automotive industry. Excluding key indicator of air pollution. Compared with the
the automotive industry, the 13 sub-sectors of the “National V” standards, the new rules demand
branches achieved an overall operating result of substantially fewer pollutants such as nitrogen
6.55 trillion yuan in the first half of the year, an oxides and particulate matters and introduce
increase of 6.06 percent over the previous year, an limits on particulate number and ammonia. The
overall result of 366.676 billion yuan, an increase of new emission standards were initially set to take
6.96 percent over the previous year, both compared effect nationwide from July 1, 2020. A three-year
to machinery industry and to national industrial action plan on air pollution control released in July
indicators. Below this, the growth rate of operating 2018 urged early implementation in major heavily-
income from construction machinery, heavy polluted areas, the Pearl River Delta region, Sichuan
mining machinery, food packaging machinery and Province and Chongqing Municipality. Automakers
robots, and intelligent manufacturing industry was and the market have been preparing for the
over 10 percent, indicating that the machinery tougher rules. Manufacturers have completed
industry is generally in good condition. Since the the development of most “China VI” models and
effects of the automotive industry in 2019, the have entered the stage of mass production and
economic activity of mechanical engineering has sales. Roll-outs of “China VI” vehicles as well as
been under a certain pressure. Although the most preferential tax and fee policies could boost
important indicators are still in a reasonable range, China’s sluggish auto market. Car sales in China
the situation at the beginning of the year is more continued to drop in May 2019, with about 1.913
serious than expected. In June 2019, the mechanical million vehicles sold, down by 16.4 percent year
engineering index was 98.24, below the critical on year. Bucking the trend, sales of NEVs kept
level for the fourth consecutive month, indicating growing that month, edging up 1.8 percent year
that pressure on the industrial sector will continue on year. China saw robust sales growth of NEVs in
in the future. At the same time, positive factors the first four months this year with 360,000 NEVs
have been accumulating. Macroeconomic policies sold, surging by 59.8 percent from the same period
have increased support for the manufacturing a year earlier. Chinese authorities have announced
industry, industrial policies have been gradually that the tax exemptions on NEV purchases will
implemented and business confidence has begun continue through 2020 to boost the country’s green
to recover. The whole industry will continue to development and retain a strong domestic market
move towards high-quality development after (Xinhua, Vehicle Emissions).
adjustment (Knell).
Construction Machinery
Vehicle Emission
Manufacturers of construction machinery and
Several provincial-level regions started building materials are expected to see steady
implementing the “China VI” vehicle emission growth in 2020, as China continues to ramp up
standards ahead of schedule to ramp up efforts fixed asset investment. With China’s endeavors
against a major source of air pollution. Sales and to pursue stable growth, advance reform, make
registrations of new vehicles in regions including
180
Market Trends Beijing, Shanghai, Tianjin, Hebei Province and
Guangdong Province now have to comply with
In 2019, although the economic operation of the what is believed to be one of the world’s strictest
machinery industry was difficult and the pressure rules on automobile pollutants. In Beijing, all new
was large, positive factors still existed. The growth buses and other heavy-duty diesel vehicles follow
rate of the machinery industry sharply fell to 4.2 the new emission rules in 2020, while all new
percent in the first half of the year. It is not only vehicles are expected to follow suit starting in
4.2 percentage points lower than the same period 2020. All existing vehicles on the roads are obliged
last year, but also lower than the national average to meet the previous “China V” emission standards.
for industry and manufacturing in the same period. Emissions from some 6.2 million vehicles were
The low level of the main economic indicators for responsible for 45 percent of Beijing’s concentration
the machinery industry has been strongly affected of small, breathable particles known as PM2.5, a
by the decline of the automotive industry. Excluding key indicator of air pollution. Compared with the
the automotive industry, the 13 sub-sectors of the “National V” standards, the new rules demand
branches achieved an overall operating result of substantially fewer pollutants such as nitrogen
6.55 trillion yuan in the first half of the year, an oxides and particulate matters and introduce
increase of 6.06 percent over the previous year, an limits on particulate number and ammonia. The
overall result of 366.676 billion yuan, an increase of new emission standards were initially set to take
6.96 percent over the previous year, both compared effect nationwide from July 1, 2020. A three-year
to machinery industry and to national industrial action plan on air pollution control released in July
indicators. Below this, the growth rate of operating 2018 urged early implementation in major heavily-
income from construction machinery, heavy polluted areas, the Pearl River Delta region, Sichuan
mining machinery, food packaging machinery and Province and Chongqing Municipality. Automakers
robots, and intelligent manufacturing industry was and the market have been preparing for the
over 10 percent, indicating that the machinery tougher rules. Manufacturers have completed
industry is generally in good condition. Since the the development of most “China VI” models and
effects of the automotive industry in 2019, the have entered the stage of mass production and
economic activity of mechanical engineering has sales. Roll-outs of “China VI” vehicles as well as
been under a certain pressure. Although the most preferential tax and fee policies could boost
important indicators are still in a reasonable range, China’s sluggish auto market. Car sales in China
the situation at the beginning of the year is more continued to drop in May 2019, with about 1.913
serious than expected. In June 2019, the mechanical million vehicles sold, down by 16.4 percent year
engineering index was 98.24, below the critical on year. Bucking the trend, sales of NEVs kept
level for the fourth consecutive month, indicating growing that month, edging up 1.8 percent year
that pressure on the industrial sector will continue on year. China saw robust sales growth of NEVs in
in the future. At the same time, positive factors the first four months this year with 360,000 NEVs
have been accumulating. Macroeconomic policies sold, surging by 59.8 percent from the same period
have increased support for the manufacturing a year earlier. Chinese authorities have announced
industry, industrial policies have been gradually that the tax exemptions on NEV purchases will
implemented and business confidence has begun continue through 2020 to boost the country’s green
to recover. The whole industry will continue to development and retain a strong domestic market
move towards high-quality development after (Xinhua, Vehicle Emissions).
adjustment (Knell).
Construction Machinery
Vehicle Emission
Manufacturers of construction machinery and
Several provincial-level regions started building materials are expected to see steady
implementing the “China VI” vehicle emission growth in 2020, as China continues to ramp up
standards ahead of schedule to ramp up efforts fixed asset investment. With China’s endeavors
against a major source of air pollution. Sales and to pursue stable growth, advance reform, make
registrations of new vehicles in regions including
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