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By the end of 2010, The whole China Machinery Industry’s production volume reached CNY
14,059.4 billion. Exported CNY 1,449.4 billion valued products.

Now Let’s have a brief overview of China machinery industry. In recent years China has carried out a series of strategic measures, to boost domestic demands with positive financial policies. “Large-scale development of North-west region” and “Rejuvenating North-east old industrial bases” with continuously strengthened infrastructure construction and enhanced implementation of various agricultural policies to enable China’s economy to continuously maintain a good status of rapid growth, high profitable and low inflation and increased living standard of the people constantly. After China joined the WTO, domestic and world markets have merged together.
1. In constitution of industry, enterprises of state-owned, enterprises of private and enterprises with foreign capital have formed three legs of tripod.
State-owned enterprises are under enormous reform. The majority of medium and small enterprises of state-owned are going through stock system for selling or contracting to have the enterprises run by civilian. A lot of private enterprises have dramatically developed. Many of them are improving the level of manufacturing equipment, actively opening up the international and domestic markets. Most world-renowned companies have started their business in China. With high-tech and large-scale production, they provide the complete sets for high-end machines or components. All these indicate that the manufacturing bases are moving to China.
2. In respect of products and manage level, the leading products produced by state-owned enterprises were developed on the basis of introduced technique from abroad in 1980s, now both quantity and quality can meet the requirement of customers. Most private enterprises give the priority to the medium level products, but the quality and variety of the products as well as service are improved continuously and comparatively faster. Enterprises with foreign capital rely mainly on the high level products; which are close to imported ones in quality. They provide the products for other domestic enterprises and key projects. Some products are of the first grade in the world and are sold all over the world.
Most products made in China are focusing on the domestic market, and a big part exports outside China.

Ⅱ. Analysis of prospects for market development
China has put forward the goal of economic development for the first 20 years of the century: insist on the view of scientific development, actively expand domestic requirement, develop such fields as in agriculture, water conservancy, energy, traffic, information, architecture and environmental protection etc.
1. Agriculture Machinery
Today China’s agriculture is a new era of historical development. In a considerable long period of time from now on, expanding operating scope, industrialized management, sustainable development, and scientific and technical innovation in agriculture shall be the four tendencies and driving forces. The development and adjustment of economic construction in agriculture requires higher level and larger scope of mechanization. Now mechanization has already developed from the traditional growing wheat to rice, maize, from traditional tillage to protecting tillage, from machine for producing grain crops to oil crops and cotton economic crops, from growing to livestock farming, aquatic products industry, fruit growing, garden farmland and manufacturing agriculture products etc. So there is a bright future of market for farm machinery. In 2010, the production increased over 25% year on year.

2. Construction Machinery
Construction machinery is the largest customer of hydraulic products, which makes up about more than 40% of the total market volume of hydraulic products. The percentage shall further increase in the future. China is in an extensive developing and constructing period, thus the demand of construction machinery in the coming several decades will up, and China will be the largest market in the world. The state-run infrastructure projects are under vigorous construction. Besides the epochal projects of Three Gorges of the Yangtze river, Diverting water from south to north, Delivering gas from west to east, Transferring electric power from west to east, Tibet-Qinghai Railway etc., there are also a lot of key projects such as: large mines, oil fields, open cut iron mines, power stations, airports, harbors, high-speed railways, high grade express ways etc. and a great amount of city construction and residential construction. Consequently, the earth and stone moving workload of infrastructure and fundamental industrial construction projects will increase continuously. In addition to the development of logistic with containerized traffic, the demand of construction machinery will keep growing at a high rate over a long period of time. By the end of year 2010, sales increased 48.09% year on year.
3. Metallurgical and Mining Equipment
The steel and iron industry shall speed up the adjustment of product structure. In the next 10～15 years, put stress on manufacturing flat plate steel, especially sheet steel and products with high additional value. State should enlarge the investment for them and make the degree of self-sufficiency of steel reach 90%.
For this reason, China need to use advanced machines to replace the backward machine, to realize continuous and automatic production with equipments in large scale, and upgrade the industry. Meanwhile China will give great impetus to process of group-collection for iron and steel industry, carry out technical reform of manufacturing process for large enterprises, make every effort to raise the utilization rate of steel by 10%～20%, take further steps to save energy by 15%～20%. Consequently, many new continuous casting machine and cold/hot rolling mill etc are needed.

4. Machine Tools
Along with the progress of manufacturing technique, China’s demands for high precision, high-efficiency CNC machines, is getting more and more. Sales increased 40.95% year on year in 2010.
5. Plastic Machinery
The demand for plastic products will increase remarkably to cater for the development in the fields of agriculture, automobile, electronics, light, foodstuff, packaging and construction industries and the improved living standard of the people as well. At present, the total output value of plastic in China has come to the forefront of the world, but the annual plastic consumption per capita is only 14.5 kg, less than the 20 kg world average annual consumption per capita and far from the 50 kg to 100 kg annual consumption per capita in developed countries. It is expected by the year 2010 to be a litter bit higher than the world average annual consumption per capita. The growing consumption of plastic products provides the opportunity for developing plastic machinery.
6. Petrochemical Equipment
Energy problem shall be the restricted factor in a long period of time in developing national economy. Accelerating the development of energy industry is of great urgency. State need to accelerate the development of petroleum and natural gas, except the project to deliver natural gas from the west to the east and other petrochemical projects are under construction, in the period of 11th five year plan shall be built 5000 km high pressure crude oil pipeline. Besides, in this period the demand of oil refining, ethylene and three synthetic materials (synthetic resin, synthetic rubber, synthetic fibre) shall increase at the rate of 6%～9%. So, there need collection and delivery equipment for oil and gas and large-scale and high-efficiency petrochemical equipment with the emphasis laid on the development of large-scale petroleum prospecting and drilling equipment for desert and ocean, large complete equipment with a yearly output of 600 000 ton ethylene, 450 000 ton synthetic ammonia, 800, 000 ton urea and chemical fibres etc. In 2010, export increased 10.57% comparing with the year of 2009.
7. Food-stuff, Packaging, Electronics, Light-industry and Textile Equipment
The emphasis is laid on the development of various high-efficiency, energy saving, multifunctional and automated complete sets of equipment and production lines, such as various liquid filling lines, production lines of fast foods and puffed foods, sterile medicine production lines and packaging lines, bag-making and bag-filling lines, suitcase making lines, high-speed tobacco processing machinery, air-jet looms, automatic winders and production lines of various household electrical appliances and electronic apparatus.
8. Harbor Terminal Facilities
In order to meet the demand of domestic construction and enlarged export and import trade, task for building coastal port and inland port is very heavy, a great number of ship loaders, car dumpers, stacking machines and container cargo handling equipment will be additionally provided or updated.
9. Ship-building and Ocean Engineering Equipment
By the year 2010, the total yearly production capacity of ship building industry will be about 10 million ton, account for 30% of the world annual output, with the emphasis laid on the development of large ocean-going tankers, LPG ships, container ships, engineering vessels, bulk ships, high-speed passenger liners and ocean-going fishing vessels. Ocean engineering equipment shall be put stress on building large engineering facilities for recovering ocean petroleum, such as large self-rising drilling ship, deep sea drilling machine, heavy-load lift, large crane and piping erection ship.
10. Power Generating Equipment
At present, electric supply has become the bottle neck, which restricts the development of economy. In the coming 20 years, the largest power-building market will be in China. Water, coal, nuclear and gas are the four pillar for power generating in China.

11. Environmental Protection Equipment
In order to keep the development of economy, society and environment well coordinated, and make the ecological damages and environmental pollution well controlled, environmental quality and comprehensive utilization of resources are raised further, state will add the investment for ecological preservation and environmental protection. China is putting emphasis on developing: urban sewage and solid wastes disposal and comprehensive utilization equipment, urban and industrial noise control equipment and atmospheric pollution control equipment.