China Construction Machinery Industry Development Status



On April 9th, 2019, the Press Conference for 15th China Beijing International Construction Machinery, Building Materials Machines and Mining Machines Exhibition & Seminar  (hereinafter called "BICES 2019") on the theme of "Intelligence Connect the World, Green Drawing a Better Future" was be held at the bauma exhibition in Munich, Germany. BICES organizer committee leaders including Chairman of China Construction Machinery Association ( hereinafter called “CCMA”) Mr. Qi Jun, Executive Vice Chairman and General-Secretary of CCMA, Mr. Su Zimeng, Vice General-Secretary of CCMA and General Manager of Beijing Asiamachine International Convention & Exhibition Ltd, Mr. Lv Ying, Vice General-Secretary of CCMA, Mr. Wang Jinxing, Vice Chairman of China Council for the Promotion of International Trade-Machinery Sub-Council, Mr. Zhou Weidong and media, exhibitors, users, and representatives of relevant national industry organizations from domestic and overseas more than 100 people attended the conference.

The following is a live recording of the keynote speech delivered by Mr. Qi Jun at the press conference:



Ladies and gentlemen:

Good afternoon! On behalf of myself and the BICES Organizing Committee, to welcome you all, and express my sincere gratitude! At the same time, on behalf of the China Construction Machinery Industry Association (CCMA), to express gratitude to the consistent support to BICES.

BICES 2019 will be held from September 4th to 7th, 2019 at the China International Exhibition Center New Venue in Beijing, China. Hereby, I officially invite everyone to come to Beijing and visit BICES 2019. Beijing will await you with the best seasons. BICES will welcome you with the perfect presentation!

In the past two years, China's construction machinery market has a rapid growth that has not been seen for many years. In 2018, the whole industry continued to grow on the basis of good development in 2017. In 2017, the industry achieved total revenues of 540.3 billion, an increase of 12.7% over 2016. In 2018, it maintained a growth rate of 10%, and the whole industry reached a market scale of around 600 billion. In 2018, sales of major products have increased considerably: excavator sales increased by 45%, loaders increased by 21.7%, bulldozers increased by 33.2%, truck cranes increased by 58%, industrial vehicles increased by 20.2%, the total major product sales increased by 25.5%. In the first quarter of 2019, market sales continued to perform well, with total sales of major products increasing by 15.2%.

The achievements of China's construction machinery industry are inseparable from the good overall environment of China's economy. According to data released by the NBS on March 31, China's official manufacturing PMI of 50.50 in March was higher than the expected 49.60, which was a rebound from the previous value of 49.20. It hit a five-month high, and the monthly growth rate was the largest since 2012. The PMI of high-tech manufacturing and equipment manufacturing was 52.0% and 51.2% respectively, which were significantly higher than the overall manufacturing industry.

Since May 1, 2018, the Chinese government has twice reduced the VAT rate in the manufacturing, construction, and transportation industries, with manufacturing value-added tax falling from 17% to 13%. The policy dividends and radiation effects brought to the manufacturing, construction and related industries will provide strong support for the stable development of the construction machinery industry in 2019 and up to now.

Two years ago, the development strategy of Xiong'an New District was first proposed, that Xiong'an New District is a major historic strategic choice made by China. Xiong'an New District is a new district comparable to Shenzhen Special Economic Zone and Shanghai Pudong New Area. It is a millennium plan and a national event. April 1st, 2019 is the second anniversary of the establishment of Xiong'an New District. At present, the construction plan of the new district has been approved by the government, and will soon enter the stage of comprehensive construction. A series of engineering projects will start work one after another, and the construction of supporting traffic roads and transportation hubs has been started in advance. The construction of an ecological city will lead to more demand for construction machinery and equipment with more environmental protection and higher efficiency.

As we all know, the construction machinery industry and infrastructure construction are closely related. According to the 2019 National Transportation Work Conference report, the main China's transportation works in 2019 include the completion of Investment in fixed assets of highway and waterway of 1.8 trillion yuan. As of the end of 2018, the railway business distance of the country reached more than 131,000 kilometers, of which more than 29,000 kilometers of high-speed rail. In 2019, the China Railway Corporation plans to put into operation a new line of 6,800 kilometers, an increase of 45% over the previous year. Among them 3,200 kilometers high-speed rail, which means that China's railway investment in 2019 will reach the highest level of 850 billion yuan in history.

The government has made arrangements for the economic and social development of China in 2019. This year, it will also promote and implement a number of related projects involving infrastructure construction in Beijing, Tianjin, Hebei, Yangtze River Economic Zone, Guangdong-Hong Kong-Macao Greater Bay Area and the western region, and accelerate the planning and construction of major projects such as Sichuan-Tibet Railway, High-speed Railway along the Yangtze River, North-South Coal Transport Passage System, Cross-regional Transmission Passage, Southwest Hydropower and so on. New construction, relocation and expansion of hub airports, orderly construction of branch airports and general airports, vigorously promote the construction of comprehensive passenger transport hub and logistics hub, and formulate the implementation plan of national logistics hub network construction.

All of the above key infrastructure construction work and people's livelihood security work require the participation and cooperation of construction machinery manufacturers from all over the world. This is also the guarantee for the continued growth of China's construction machinery market in the future.

China's construction machinery market has already ushered in a new round of growth. We welcome global construction machinery companies to participate in the Chinese market and Beijing BICES to grow together with China's economy.