Page 154 - 2023 White Paper on the Business Environment in China
P. 154
3 White Paper on the Business Environment in China
2.4 Machinery and Semiconductors
Key Take-Aways a national unified market was jointly released
in April 2022 by the Communist Party of China
• The U.S. Department of Commerce Central Committee and the State Council.
introduced sweeping rules aimed at cutting China The guideline calls for boosting scientific and
off from obtaining or manufacturing key chips and technological innovation and industrial upgrading,
components for supercomputers. This is likely to promoting efficient domestic circulation, fostering
hobble China’s domestic chip industry. a stable, fair, transparent and predictable business
environment, lowering transaction costs as well as
• Currently, there are over 439,000 service cultivating a key competitive edge in international
robot-related enterprises in China. competition and cooperation (CD, Smart).
Background Construction Machinery
China's machinery industry registered steady China's demand for Construction Equipment
expansion in revenue in the first half of 2022. The has grown at a fast pace in the past decade. In
operating revenue of firms in the sector totaled the next decade, both production and demand
12.95 trillion RMB (about US$1.9 trillion) during the will continue to grow. The Chinese economy
period, up 5.44 percent year on year. The added maintains a high speed growth which has been
value of the sector rose 0.7 percent year on year stimulated by the consecutive increases of
during the period, the data showed. Expansion is industrial output, import and export, consumer
attributed to a package of pro-growth measures consumption and capital investment for over
from the government since the beginning of the two decades (BW, Chinese Construction).
year. The total export volume of the machinery
industry also saw a year-on-year increase of 10.41%, China's construction machinery sector is
showing the resilience of the sector. Looking expected to see stable export growth in 2023
ahead, more efforts should be made to ensure on the back of soaring overseas infrastructure
solid implementation of the pro-growth policies, projects and strong global orders for electric-
stabilize industrial chains and solve the difficulties powered excavators, loaders and other mining
facing enterprises (Xinhua, China’s Machinery). equipment. The export orders for products from
excavators and earth moving equipment, to mining
Smart manufacturing has been widely machineries such as giant mining trucks and
applied in various industries to boost industrial excavators, have all experienced between 300%
transformation for more high-quality development and 400% growth year-on-year in the first four
in China. Manufacturing companies are encouraged months of 2022. The country's major excavator
to change chips and production line equipment manufacturers reported a sharp increase in
and replace human beings with robots to speed exports in the first four months of 2022, as their
up industrial transformation and upgrading in exports surged by 78.9% year-on-year to 33,791
Yantai, East China's Shandong province. Smart units during the period. Since many foreign
manufacturing has also been used in auto parts companies have adopted a "go green" approach to
manufacturing and spinning industries in Yuncheng, further reduce carbon emissions and save on the
Shanxi province and Fuzhou, Fujian province. A cost of diesel fuel, many domestic manufacturers
guideline on accelerating the establishment of have accelerated the pace of developing electric-
154
2.4 Machinery and Semiconductors
Key Take-Aways a national unified market was jointly released
in April 2022 by the Communist Party of China
• The U.S. Department of Commerce Central Committee and the State Council.
introduced sweeping rules aimed at cutting China The guideline calls for boosting scientific and
off from obtaining or manufacturing key chips and technological innovation and industrial upgrading,
components for supercomputers. This is likely to promoting efficient domestic circulation, fostering
hobble China’s domestic chip industry. a stable, fair, transparent and predictable business
environment, lowering transaction costs as well as
• Currently, there are over 439,000 service cultivating a key competitive edge in international
robot-related enterprises in China. competition and cooperation (CD, Smart).
Background Construction Machinery
China's machinery industry registered steady China's demand for Construction Equipment
expansion in revenue in the first half of 2022. The has grown at a fast pace in the past decade. In
operating revenue of firms in the sector totaled the next decade, both production and demand
12.95 trillion RMB (about US$1.9 trillion) during the will continue to grow. The Chinese economy
period, up 5.44 percent year on year. The added maintains a high speed growth which has been
value of the sector rose 0.7 percent year on year stimulated by the consecutive increases of
during the period, the data showed. Expansion is industrial output, import and export, consumer
attributed to a package of pro-growth measures consumption and capital investment for over
from the government since the beginning of the two decades (BW, Chinese Construction).
year. The total export volume of the machinery
industry also saw a year-on-year increase of 10.41%, China's construction machinery sector is
showing the resilience of the sector. Looking expected to see stable export growth in 2023
ahead, more efforts should be made to ensure on the back of soaring overseas infrastructure
solid implementation of the pro-growth policies, projects and strong global orders for electric-
stabilize industrial chains and solve the difficulties powered excavators, loaders and other mining
facing enterprises (Xinhua, China’s Machinery). equipment. The export orders for products from
excavators and earth moving equipment, to mining
Smart manufacturing has been widely machineries such as giant mining trucks and
applied in various industries to boost industrial excavators, have all experienced between 300%
transformation for more high-quality development and 400% growth year-on-year in the first four
in China. Manufacturing companies are encouraged months of 2022. The country's major excavator
to change chips and production line equipment manufacturers reported a sharp increase in
and replace human beings with robots to speed exports in the first four months of 2022, as their
up industrial transformation and upgrading in exports surged by 78.9% year-on-year to 33,791
Yantai, East China's Shandong province. Smart units during the period. Since many foreign
manufacturing has also been used in auto parts companies have adopted a "go green" approach to
manufacturing and spinning industries in Yuncheng, further reduce carbon emissions and save on the
Shanxi province and Fuzhou, Fujian province. A cost of diesel fuel, many domestic manufacturers
guideline on accelerating the establishment of have accelerated the pace of developing electric-
154
