Page 214 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
purchasing managers' index for the manufacturing investment in its domestic agricultural industry, as
sector came in at 51.9 in March 2021, indicating the nation looks toward prioritizing vital long-term
further expansion from the previous month. The industries for national longevity post-pandemic.
robust pace of sales reflects strong demand for
construction machinery and macroeconomic China is amongst the largest manufacturers
vitality in the first quarter, according to industry of farming equipment and the largest market for
insiders. The sales boom of excavators can be agricultural equipment globally. Most of the farming
attributed to China's huge economic growth equipment industries are mainly concentrated in
capacity and massive infrastructure. Under the Shandong, Henan, Jiangsu, Liaoning, and Zhejiang
country's coordinated regional development provinces. To maintain sound crop production
strategy, demand for infrastructure construction and progressive development of the agriculture
remains huge with continuous efforts to drive sector, the adoption of agriculture farm equipment
development of the Beijing-Tianjin-Hebei region, has increased in China. It contributes to the China
the Yangtze Economic Belt and the Guangdong- Agriculture Equipment Market's proper growth.
Hong Kong-Macao Greater Bay Area. China has China Agriculture Equipment Market is anticipated
also been stepping up policy and fiscal support to register significant growth projections during the
for "new infrastructure", which has been included forecast period backed by increasing government
in the country's 14th Five-Year Plan (2021-25). investments in developing the agriculture sector in
From 5G big data centers to urban rail transit, the China coupled with decent rebates and incentives
presence of construction machinery manufacturers initiated by the Chinese government for easy
remains crucial, generating sustained growth of procurement of farm equipment. Although the
China's construction machinery market in the agricultural equipment industry in China is based
future. At present, the excavator market is still on on evolving technology, the lack of human capital
the rise, with equal stress on stock update and and the necessary infrastructure to develop
incremental demand. It can be predicted that high sophisticated farming machines that can compete
levels of prosperity will last for China's construction with foreign products are some of the major
machinery industry, which will surely continue to factors restraining its growth. Due to this, China
grow steadily in the next five years. The country relies heavily on imports for high-tech farming
is experiencing a sped-up urbanization process equipment. The demand for large and medium
with the future trend being the replacement of tractor in China is quite huge, and its sales are
human labor with machines. Chinese construction increasing rapidly. Small tractors are the most
machinery, represented by excavators, will extensive selling agriculture equipment as it's more
embrace good development opportunities with affordable and used by an average farmer across
their ever-expanding application scenarios. For China. Furthermore, the small tractor's demand
example, micro excavators, some of which are is increasing because of the improving per capita
narrow enough to be driven through doorways, income of the farmer in the country. The harvesting
are becoming increasingly popular among Chinese machine has been categorized into a single
buyers as they can function well in confined spaces harvesting machine that performs a single task and
and help in smart agriculture (Xinhua, Excavator). a combine/multipurpose harvesting machine that
can perform harvesting of multiple crops. Further,
Farm Equipment the combine harvester has been categorized into
three parts; rice combine harvester, wheat combine
China’s demand for Farm Equipment has grown harvester and other combine harvesters. In China,
at a fast pace in the past decade. In the next decade, the companies dealing in Agricultural Equipment
both production and demand will continue to grow. are competing based on equipment quality and
The Chinese economy maintains a high speed growth promotion. New product launches, partnerships,
which has been stimulated by the consecutive and acquisitions are the major strategies adopted
increases of industrial output, imports and exports, by the country's leading companies (R&M).
consumer consumption and capital investment for
over two decades. China has pledged to increase Many areas of technology, from AI farming
technology to the latest in pesticide control, are
214
purchasing managers' index for the manufacturing investment in its domestic agricultural industry, as
sector came in at 51.9 in March 2021, indicating the nation looks toward prioritizing vital long-term
further expansion from the previous month. The industries for national longevity post-pandemic.
robust pace of sales reflects strong demand for
construction machinery and macroeconomic China is amongst the largest manufacturers
vitality in the first quarter, according to industry of farming equipment and the largest market for
insiders. The sales boom of excavators can be agricultural equipment globally. Most of the farming
attributed to China's huge economic growth equipment industries are mainly concentrated in
capacity and massive infrastructure. Under the Shandong, Henan, Jiangsu, Liaoning, and Zhejiang
country's coordinated regional development provinces. To maintain sound crop production
strategy, demand for infrastructure construction and progressive development of the agriculture
remains huge with continuous efforts to drive sector, the adoption of agriculture farm equipment
development of the Beijing-Tianjin-Hebei region, has increased in China. It contributes to the China
the Yangtze Economic Belt and the Guangdong- Agriculture Equipment Market's proper growth.
Hong Kong-Macao Greater Bay Area. China has China Agriculture Equipment Market is anticipated
also been stepping up policy and fiscal support to register significant growth projections during the
for "new infrastructure", which has been included forecast period backed by increasing government
in the country's 14th Five-Year Plan (2021-25). investments in developing the agriculture sector in
From 5G big data centers to urban rail transit, the China coupled with decent rebates and incentives
presence of construction machinery manufacturers initiated by the Chinese government for easy
remains crucial, generating sustained growth of procurement of farm equipment. Although the
China's construction machinery market in the agricultural equipment industry in China is based
future. At present, the excavator market is still on on evolving technology, the lack of human capital
the rise, with equal stress on stock update and and the necessary infrastructure to develop
incremental demand. It can be predicted that high sophisticated farming machines that can compete
levels of prosperity will last for China's construction with foreign products are some of the major
machinery industry, which will surely continue to factors restraining its growth. Due to this, China
grow steadily in the next five years. The country relies heavily on imports for high-tech farming
is experiencing a sped-up urbanization process equipment. The demand for large and medium
with the future trend being the replacement of tractor in China is quite huge, and its sales are
human labor with machines. Chinese construction increasing rapidly. Small tractors are the most
machinery, represented by excavators, will extensive selling agriculture equipment as it's more
embrace good development opportunities with affordable and used by an average farmer across
their ever-expanding application scenarios. For China. Furthermore, the small tractor's demand
example, micro excavators, some of which are is increasing because of the improving per capita
narrow enough to be driven through doorways, income of the farmer in the country. The harvesting
are becoming increasingly popular among Chinese machine has been categorized into a single
buyers as they can function well in confined spaces harvesting machine that performs a single task and
and help in smart agriculture (Xinhua, Excavator). a combine/multipurpose harvesting machine that
can perform harvesting of multiple crops. Further,
Farm Equipment the combine harvester has been categorized into
three parts; rice combine harvester, wheat combine
China’s demand for Farm Equipment has grown harvester and other combine harvesters. In China,
at a fast pace in the past decade. In the next decade, the companies dealing in Agricultural Equipment
both production and demand will continue to grow. are competing based on equipment quality and
The Chinese economy maintains a high speed growth promotion. New product launches, partnerships,
which has been stimulated by the consecutive and acquisitions are the major strategies adopted
increases of industrial output, imports and exports, by the country's leading companies (R&M).
consumer consumption and capital investment for
over two decades. China has pledged to increase Many areas of technology, from AI farming
technology to the latest in pesticide control, are
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