Page 210 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
fluctuating COVID-19 pandemic, a number of major major facilities and tourism spots. Apart from the
projects and policy measures to promote the new Civil Aviation Administration of China's plan of
dual-circulation development paradigm will help increasing the number of civil transport airports to
stabilize the growth of China's machinery industry. about 400 in the coming years, the National Railway
They will also create market demand. China's new Administration of China announced in early 2021
development paradigm takes the domestic market that China will aim to build a 200,000-km railway
as the mainstay while allowing the domestic and network by 2035, including 70,000 km of high-speed
foreign markets to boost each other. The country railways. Major railway infrastructure projects
aims to develop a large domestic market while also will be built to boost the development of China's
focusing more on value-added exports. Continuing western region, such as the Sichuan-Tibet railway
urbanization and large-scale commercialization of and a railway corridor connecting inland areas in
emerging technologies in China are set to drive southwestern and southern China, according to the
sustainable growth of consumers, as well as the administration (Zhong, Machinery Makers).
technology and high-end machinery manufacturing
sectors. Even though affected by issues like Market Trends
delayed production, poor logistics conditions and
overseas order cancellations, China's machinery China is accelerating implementation of major
industry posted steady performance in 2020, with projects with focus on high-tech manufacturing,
revenues and profits beating expectations. Profits new infrastructure and new urbanization
of machinery manufacturers totaled 1.46 trillion initiatives, which will help stabilize investments
RMB (US$225.7 billion) in 2020, up 10.4% on a and create jobs, playing a key role in promoting the
yearly basis, from a revenue of 22.85 trillion RMB, steady recovery of domestic demand. This should
up 4.49%. Segments like construction machinery, help expand effective investment and foster high-
industrial robot and smart manufacturing all saw quality development across the country. "New
double-digit growth that year. As over 600,000 infrastructure" refers to physical installations
5G base stations were built in 2020, and 462,000 like equipment, machinery and facilities as well
charging pillars were constructed for electric cars. as technologies relating to 5G telecom, big data,
This kind of new infrastructure has created a sound artificial intelligence, electric vehicles, autonomous
platform for the growth of machinery makers. The driving, industrial internet and similar cutting-
better-than-expected performance of the sector edge advances. Implementation of key projects
was partly due to China's positive fiscal policies. across the nation augurs well for consolidating the
economic recovery from the COVID-19 pandemic
Revenues and profits will likely also grow by 4% effects. As of July 2021, 100 major projects have
on a yearly basis. Since the government plans to run been launched in Beijing, with a total investment
a nearly 700,000-kilometer transportation network of 83.9 billion RMB (US$13 billion). The city's fixed-
formed by roads, railways, waterways and air routes, asset investment increased by 12.9% year-on-year
build main corridors and passages as the skeleton during the January-May period. In particular, the
of national transport network, and establish 100 investment to shore up weak links and consolidate
transport hub cities by 2035, it will create long-term strong links in industrial and supply chains surged
momentum for the country's machinery makers, significantly during the first five months of 2021. For
especially in the construction machinery sector. instance, investments in high-tech manufacturing
Modern transportation infrastructure facilities can and business services jumped 35.1% and 48%
help lower-tier Chinese cities, counties and villages year-on-year, respectively. The rapid growth of
ship their agricultural and industrial products to investment in high-end manufacturing has shown
other parts of the country as well as other countries local governments' greater emphasis on investment
efficiently, and accommodate imports such as efficiency. The need for investment in real estate,
production materials, factory equipment and infrastructure and manufacturing should continue
consumer goods at lower costs from ports either to grow into 2022. With the steady recovery of the
within their regions or in other domestic locations. domestic economy, the government's regulation on
The new infrastructure network will connect all the housing market and the steady development
county-level administrative regions, borders,
210
fluctuating COVID-19 pandemic, a number of major major facilities and tourism spots. Apart from the
projects and policy measures to promote the new Civil Aviation Administration of China's plan of
dual-circulation development paradigm will help increasing the number of civil transport airports to
stabilize the growth of China's machinery industry. about 400 in the coming years, the National Railway
They will also create market demand. China's new Administration of China announced in early 2021
development paradigm takes the domestic market that China will aim to build a 200,000-km railway
as the mainstay while allowing the domestic and network by 2035, including 70,000 km of high-speed
foreign markets to boost each other. The country railways. Major railway infrastructure projects
aims to develop a large domestic market while also will be built to boost the development of China's
focusing more on value-added exports. Continuing western region, such as the Sichuan-Tibet railway
urbanization and large-scale commercialization of and a railway corridor connecting inland areas in
emerging technologies in China are set to drive southwestern and southern China, according to the
sustainable growth of consumers, as well as the administration (Zhong, Machinery Makers).
technology and high-end machinery manufacturing
sectors. Even though affected by issues like Market Trends
delayed production, poor logistics conditions and
overseas order cancellations, China's machinery China is accelerating implementation of major
industry posted steady performance in 2020, with projects with focus on high-tech manufacturing,
revenues and profits beating expectations. Profits new infrastructure and new urbanization
of machinery manufacturers totaled 1.46 trillion initiatives, which will help stabilize investments
RMB (US$225.7 billion) in 2020, up 10.4% on a and create jobs, playing a key role in promoting the
yearly basis, from a revenue of 22.85 trillion RMB, steady recovery of domestic demand. This should
up 4.49%. Segments like construction machinery, help expand effective investment and foster high-
industrial robot and smart manufacturing all saw quality development across the country. "New
double-digit growth that year. As over 600,000 infrastructure" refers to physical installations
5G base stations were built in 2020, and 462,000 like equipment, machinery and facilities as well
charging pillars were constructed for electric cars. as technologies relating to 5G telecom, big data,
This kind of new infrastructure has created a sound artificial intelligence, electric vehicles, autonomous
platform for the growth of machinery makers. The driving, industrial internet and similar cutting-
better-than-expected performance of the sector edge advances. Implementation of key projects
was partly due to China's positive fiscal policies. across the nation augurs well for consolidating the
economic recovery from the COVID-19 pandemic
Revenues and profits will likely also grow by 4% effects. As of July 2021, 100 major projects have
on a yearly basis. Since the government plans to run been launched in Beijing, with a total investment
a nearly 700,000-kilometer transportation network of 83.9 billion RMB (US$13 billion). The city's fixed-
formed by roads, railways, waterways and air routes, asset investment increased by 12.9% year-on-year
build main corridors and passages as the skeleton during the January-May period. In particular, the
of national transport network, and establish 100 investment to shore up weak links and consolidate
transport hub cities by 2035, it will create long-term strong links in industrial and supply chains surged
momentum for the country's machinery makers, significantly during the first five months of 2021. For
especially in the construction machinery sector. instance, investments in high-tech manufacturing
Modern transportation infrastructure facilities can and business services jumped 35.1% and 48%
help lower-tier Chinese cities, counties and villages year-on-year, respectively. The rapid growth of
ship their agricultural and industrial products to investment in high-end manufacturing has shown
other parts of the country as well as other countries local governments' greater emphasis on investment
efficiently, and accommodate imports such as efficiency. The need for investment in real estate,
production materials, factory equipment and infrastructure and manufacturing should continue
consumer goods at lower costs from ports either to grow into 2022. With the steady recovery of the
within their regions or in other domestic locations. domestic economy, the government's regulation on
The new infrastructure network will connect all the housing market and the steady development
county-level administrative regions, borders,
210
