Page 158 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
are concentrated only in the provinces of initiative aims to accelerate the mechanized,
Shandong, Henan, Jiangsu, Liaoning, and Zhejiang. intelligent and green development of agricultural
Although the agricultural machinery industry is production, providing solid equipment support
evolving in terms of technology, over the long for ensuring the country's food security as well as
term, decreasing human capital, increasing labor high-quality agricultural and rural development.
wages in agriculture, and government initiatives Focused on solving the key problems of agricultural
for farm mechanization are expected to boost machinery and equipment, the initiative calls for
the market's growth. According to data from the enhancing scientific and technological research
National Bureau of Statistics of China, the country on efficient, intelligent and green agricultural
produced 617,700 tractors in 2019. Large and machinery. The initiative is centered on intelligent
medium-sized tractors gradually replaced small production equipment for major food crops,
tractors. As of the end of 2019, China boasted 22.24 self-sufficiency of key and core technologies in
million agricultural tractors, including 4.44 million production equipment for cotton and oil bulk cash
large- and medium-sized tractors. In northern crops, and the comprehensive eradication of weak
China, high horsepower tractors are used on a links, and development of regional production
large scale, as farm sizes are generally large, unlike equipment. It calls for targeted scientific and
in southern China, where farm sizes are pretty technological breakthroughs in key equipment and
small. Large farm tractors are expensive, so many technologies such as bulk crops, facility agriculture,
farmers outsource their cropping work to third- and hilly and mountainous areas. The initiative is an
party contractors, who value the performance and important measure to accelerate the scientific and
profitability of their investment. To boost domestic technological innovation of agricultural machinery
production of farm machinery, the Chinese and equipment in the country. The country's
government has an agricultural machinery subsidy agricultural machinery and equipment innovation
policy to provide financial assistance for purchasing capacity has improved in recent years, and the
heavy agricultural machinery, including agricultural overall mechanization rate of crop cultivation has
tractors. The types of subsidy equipment cover 45 exceeded 71%. However, there are still problems
items in 23 categories and 11 categories, including such as the lack of agricultural machinery in hilly
farming and land preparation machinery, planting and mountainous areas. The CAAS will strive
and fertilizing machinery, and field management to realize leap-forward development of China's
machinery. Buyers of tractors of 60 HP and above agricultural machinery equipment and agricultural
can enjoy a subsidy of 150,000 RMB. China also mechanization technology by 2030 (CGTN).
introduced the 'Made in China 2025' scheme,
which aims at producing 90% of the country's Robotics
agricultural equipment with high-end machines,
such as agricultural tractors, which held a one- The industrial robotics market in China
third share of the market segment in 2020. This, achieved strong growth with a new record of
in turn, boosts indigenously produced tractors 243,300 installations in 2021 – a rise of 44%
and propels the country's agricultural tractor compared to the previous year. China was leading
market. Thus, with the introduction of advanced the global recovery after the Covid-19 pandemic
models by market players, clubbed with supportive and accounted for half of worldwide robot
government initiatives, the domestic market for installations in 2021. Growth is strong across all
agricultural tractors in China is anticipated to grow industries with electrical and electronics being the
during the forecast period. The Chinese agricultural dominant sector – up 30% to 81,600 installations.
machinery market is fragmented in nature. The top In China aging population's demographics
five domestic manufacturers account for less than causes shortage of labor and drives the growth
25% of the market (BW, China Agriculture). of robotic automation. State authorities aim
to boost employment and entrepreneurial
The Chinese Academy of Agricultural Sciences opportunities among college graduates. In June
(CAAS) launched an initiative to strengthen scientific 2022, 18 new professions including “robotics
and technological innovation in agricultural engineering technician” were announced by the
machinery and equipment in August 2022. The
158
are concentrated only in the provinces of initiative aims to accelerate the mechanized,
Shandong, Henan, Jiangsu, Liaoning, and Zhejiang. intelligent and green development of agricultural
Although the agricultural machinery industry is production, providing solid equipment support
evolving in terms of technology, over the long for ensuring the country's food security as well as
term, decreasing human capital, increasing labor high-quality agricultural and rural development.
wages in agriculture, and government initiatives Focused on solving the key problems of agricultural
for farm mechanization are expected to boost machinery and equipment, the initiative calls for
the market's growth. According to data from the enhancing scientific and technological research
National Bureau of Statistics of China, the country on efficient, intelligent and green agricultural
produced 617,700 tractors in 2019. Large and machinery. The initiative is centered on intelligent
medium-sized tractors gradually replaced small production equipment for major food crops,
tractors. As of the end of 2019, China boasted 22.24 self-sufficiency of key and core technologies in
million agricultural tractors, including 4.44 million production equipment for cotton and oil bulk cash
large- and medium-sized tractors. In northern crops, and the comprehensive eradication of weak
China, high horsepower tractors are used on a links, and development of regional production
large scale, as farm sizes are generally large, unlike equipment. It calls for targeted scientific and
in southern China, where farm sizes are pretty technological breakthroughs in key equipment and
small. Large farm tractors are expensive, so many technologies such as bulk crops, facility agriculture,
farmers outsource their cropping work to third- and hilly and mountainous areas. The initiative is an
party contractors, who value the performance and important measure to accelerate the scientific and
profitability of their investment. To boost domestic technological innovation of agricultural machinery
production of farm machinery, the Chinese and equipment in the country. The country's
government has an agricultural machinery subsidy agricultural machinery and equipment innovation
policy to provide financial assistance for purchasing capacity has improved in recent years, and the
heavy agricultural machinery, including agricultural overall mechanization rate of crop cultivation has
tractors. The types of subsidy equipment cover 45 exceeded 71%. However, there are still problems
items in 23 categories and 11 categories, including such as the lack of agricultural machinery in hilly
farming and land preparation machinery, planting and mountainous areas. The CAAS will strive
and fertilizing machinery, and field management to realize leap-forward development of China's
machinery. Buyers of tractors of 60 HP and above agricultural machinery equipment and agricultural
can enjoy a subsidy of 150,000 RMB. China also mechanization technology by 2030 (CGTN).
introduced the 'Made in China 2025' scheme,
which aims at producing 90% of the country's Robotics
agricultural equipment with high-end machines,
such as agricultural tractors, which held a one- The industrial robotics market in China
third share of the market segment in 2020. This, achieved strong growth with a new record of
in turn, boosts indigenously produced tractors 243,300 installations in 2021 – a rise of 44%
and propels the country's agricultural tractor compared to the previous year. China was leading
market. Thus, with the introduction of advanced the global recovery after the Covid-19 pandemic
models by market players, clubbed with supportive and accounted for half of worldwide robot
government initiatives, the domestic market for installations in 2021. Growth is strong across all
agricultural tractors in China is anticipated to grow industries with electrical and electronics being the
during the forecast period. The Chinese agricultural dominant sector – up 30% to 81,600 installations.
machinery market is fragmented in nature. The top In China aging population's demographics
five domestic manufacturers account for less than causes shortage of labor and drives the growth
25% of the market (BW, China Agriculture). of robotic automation. State authorities aim
to boost employment and entrepreneurial
The Chinese Academy of Agricultural Sciences opportunities among college graduates. In June
(CAAS) launched an initiative to strengthen scientific 2022, 18 new professions including “robotics
and technological innovation in agricultural engineering technician” were announced by the
machinery and equipment in August 2022. The
158
