China Country Market
Insights and Opportunities
Overview: China’s Machine Tool industry has experienced fast growth over the years and gets more sophisticated every day. However, most Chinese machinery is basic, low end or labor intensive. Imports of high-tech, complicated and specialized machinery will continue to expand to serve the country’s economic development especially for key areas such as the automobile, aviation and aerospace, shipbuilding, railway, and power industries.
China is the world largest machine tool producer, but, most of the country’s machine tool equipment remains at a low technology stage.
U.S. companies should check the export control for certain products with the US export control office before completing any business transactions as many high-end American machines and machine tools require export licenses which need to be applied for well in advance of any intended shipment.
Opportunities: For machine tools, China will still rely on imports for precision CNC machine tool, laser-cutting tool, CMM, automated quality control and robotic assembly system.
The Chinese government has provided financial incentives for foreign machinery manufactures to invest in fixed assets to modernize China’s facilities and increase Chinese efficiencies. Many machinery companies make or assemble product in China for the Chinese market and are therefore able to compete very successfully with products from their Chinese manufacturing facilities. Mining elevator equipment, agricultural transportation vehicle, hay machinery, combined harvester, scraper, and pile driver and drawer should continue to have strong export prospects in China.