Page 208 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
2.4 Machinery and Semiconductors
Key Take-Aways market. The average annual growth rate of added
value of the high-tech manufacturing industry was
• China's machinery industry saw robust 10.4% from 2016 to 2020, which was 4.9 percentage
growth in revenue and profits in the first five points higher than the average annual growth rate
months of 2021. The added value of China's of added value of industrial companies with annual
machinery industry rose 26.7%year-on-year, 8.9 revenue of more than 20 million RMB (US$3 million)
percentage points higher than the overall growth for the five-year period. Looking ahead, more efforts
of China's industrial sector. should be made to promote the deep integration
of industrial chain and innovation chain, promote
• China Agriculture Equipment Market the digital and intelligent development of industrial
Opportunity will be US$ 43.5 Billion by 2026 from chains and accelerate industrial transfers to central
US$ 27.8 Billion in 2020, growing at a CAGR of 7.75%. and western regions of the country (Ouyang,
Coming up).
• China's home appliance market is expected
to return to pre-pandemic levels this year as high- The sudden outbreak of COVID-19 brought huge
end and smart products grow in popularity. impacts on the home appliance industry. The retail
sales of the business dropped drastically by over
• The number of newly registered chip- 30% in the first quarter of 2020 from a year ago, due
related companies in China more than tripled in the to impeded supply chain, offline sales, and logistics.
first five months of 2021 from the same period in
2020 in a fresh sign that China is sparing no effort Background
in its pursuit of self-sufficiency in semiconductors,
for which the country relies heavily on imports and China's machinery industry saw robust growth
US technologies to satisfy domestic demand. in revenue and profits in the first five months
of 2021. The combined operating revenue of
Covid-19 Repercussions companies in the sector came in at 10.08 trillion
RMB (about US$1.56 trillion) from January to May,
In the context of the COVID-19 pandemic that jumping 35.1% year-on-year. During this period, the
has created grim and complicated situations in companies' profits surged 56.8% from 2020 to 630
China and abroad, new problems and challenges billion RMB. The added value of China's machinery
bedevil the development of various enterprises. industry rose 26.7% year-on-year, 8.9 percentage
Lack of independent innovation capabilities, risks points higher than the overall growth of China's
in industrial and supply chains, and a shortage industrial sector (Xinhua, Sector Logs).
of talent in the fields of technological innovation
and operational management are proving to be The restorative investment and construction
impediments to contend with. Despite mounting projects planned and conducted during China's
uncertainties, China has the confidence and 14th Five-Year Plan period (2021-25) will create
capabilities to deepen the implementation of the growth momentum, and further spur the structural
manufacturing powerhouse strategy, as it has a adjustment and industrial upgrading of China's
complete industrial system, a large number of skilled machinery manufacturing sector. Even though the
workers and engineers, developed infrastructure export front remains difficult and unable to support
and logistics networks, and a very large domestic many Chinese machinery makers on account of the
208
2.4 Machinery and Semiconductors
Key Take-Aways market. The average annual growth rate of added
value of the high-tech manufacturing industry was
• China's machinery industry saw robust 10.4% from 2016 to 2020, which was 4.9 percentage
growth in revenue and profits in the first five points higher than the average annual growth rate
months of 2021. The added value of China's of added value of industrial companies with annual
machinery industry rose 26.7%year-on-year, 8.9 revenue of more than 20 million RMB (US$3 million)
percentage points higher than the overall growth for the five-year period. Looking ahead, more efforts
of China's industrial sector. should be made to promote the deep integration
of industrial chain and innovation chain, promote
• China Agriculture Equipment Market the digital and intelligent development of industrial
Opportunity will be US$ 43.5 Billion by 2026 from chains and accelerate industrial transfers to central
US$ 27.8 Billion in 2020, growing at a CAGR of 7.75%. and western regions of the country (Ouyang,
Coming up).
• China's home appliance market is expected
to return to pre-pandemic levels this year as high- The sudden outbreak of COVID-19 brought huge
end and smart products grow in popularity. impacts on the home appliance industry. The retail
sales of the business dropped drastically by over
• The number of newly registered chip- 30% in the first quarter of 2020 from a year ago, due
related companies in China more than tripled in the to impeded supply chain, offline sales, and logistics.
first five months of 2021 from the same period in
2020 in a fresh sign that China is sparing no effort Background
in its pursuit of self-sufficiency in semiconductors,
for which the country relies heavily on imports and China's machinery industry saw robust growth
US technologies to satisfy domestic demand. in revenue and profits in the first five months
of 2021. The combined operating revenue of
Covid-19 Repercussions companies in the sector came in at 10.08 trillion
RMB (about US$1.56 trillion) from January to May,
In the context of the COVID-19 pandemic that jumping 35.1% year-on-year. During this period, the
has created grim and complicated situations in companies' profits surged 56.8% from 2020 to 630
China and abroad, new problems and challenges billion RMB. The added value of China's machinery
bedevil the development of various enterprises. industry rose 26.7% year-on-year, 8.9 percentage
Lack of independent innovation capabilities, risks points higher than the overall growth of China's
in industrial and supply chains, and a shortage industrial sector (Xinhua, Sector Logs).
of talent in the fields of technological innovation
and operational management are proving to be The restorative investment and construction
impediments to contend with. Despite mounting projects planned and conducted during China's
uncertainties, China has the confidence and 14th Five-Year Plan period (2021-25) will create
capabilities to deepen the implementation of the growth momentum, and further spur the structural
manufacturing powerhouse strategy, as it has a adjustment and industrial upgrading of China's
complete industrial system, a large number of skilled machinery manufacturing sector. Even though the
workers and engineers, developed infrastructure export front remains difficult and unable to support
and logistics networks, and a very large domestic many Chinese machinery makers on account of the
208
