{"id":60232,"date":"2025-03-18T15:44:08","date_gmt":"2025-03-18T15:44:08","guid":{"rendered":"https:\/\/marketingtochina.com\/?p=60232"},"modified":"2025-03-19T07:57:41","modified_gmt":"2025-03-19T07:57:41","slug":"china-machinery-market-how-to-get-clients","status":"publish","type":"post","link":"https:\/\/marketingtochina.com\/china-machinery-market-how-to-get-clients\/","title":{"rendered":"China Machinery Market: How to get Industrial Chinese Buyers"},"content":{"rendered":"\n

China\u2019s machinery market is booming\u2014but breaking in isn\u2019t easy.<\/strong><\/p>\n\n\n\n

As the world\u2019s largest producer and consumer of industrial equipment, China offers immense opportunities. However, fierce competition, complex regulations, and shifting buyer preferences make market entry a challenge. Success requires more than just having a great product\u2014it demands the right strategy.<\/p>\n\n\n\n

At GMA<\/strong>, we specialize in helping foreign businesses navigate the Chinese market. With years of experience in B2B marketing and lead generation, we know what works.<\/p>\n\n\n\n

In this guide, you\u2019ll discover key industry trends, effective marketing tactics, and proven strategies to attract Chinese industrial buyers. <\/p>\n\n\n\n\n\n\n

China Machinery Market overview<\/h2>\n\n\n\n

China’s Construction Equipment Market is expected to experience a growth of 4.8% in the span of 2020 \u2013 2025. China along with being the largest manufacturer of construction equipment globally is also the largest market for construction machinery in the world. The consequent interest in this sector is mainly due to the increase of rural construction activities, urbanization, and the rise in public-private partnerships.<\/p>\n\n\n\n

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Belt and Road Initiative Map<\/figcaption><\/figure>\n\n\n\n

Moreover, China also has one of the world\u2019s best construction machinery supply chains, with all parts of the supply chain being located in China. The increasing focus on infrastructure and the development of automation in the construction and manufacturing processes had a significant impact on the market expansion. Furthermore, the road construction machinery market has recently witnessed a substantial increase in the road improvement programs such as the Belt and Road Initiative<\/a>.<\/p>\n\n\n\n

Renting and leasing of construction machinery is on the rise. Buying new equipment involves high cost, maintenance, and storage-related issues. Renting is becoming a viable possibility for newer businesses as well. In fact, for short-term construction applications, renting machinery has been preferable to an original purchase among construction contractors.<\/p>\n\n\n\n

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China Machinery Sector: Key Market trends<\/h2>\n\n\n
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China Machinery Market trends<\/figcaption><\/figure><\/div>\n\n\n

Growing Demand for Second-Hand Machines<\/h3>\n\n\n\n

China is one of the largest manufacturing countries and consumers of building construction equipment globally. However, industry earnings are expected to rise to annualized 1.5% as it has been doing over the past five years till 2019.<\/p>\n\n\n\n

However since 2012, spending in China surpassed those of the US, nonetheless, it is important to note that the demand for construction equipment has decreased in China, creating an excess of both unused and used construction equipment.<\/p>\n\n\n\n

Low demand from the construction industry has resulted in generating low income, especially concerning major companies. The competition inherent to the market has also been very intense, which pushed the major equipment manufacturers to lower the prices of their equipment in order to attract more consumers.<\/p>\n\n\n\n

Consequently, the used equipment is gradually becoming more popular, for the reason that used equipment is generally sold in good condition and at substantially affordable rates. A significant economic obstacle in shipping costs, unfavorable exchange rates, and heavy import taxes on new equipment can cost a lot more, resulting in companies being reluctant to buy new equipment. This can be a challenge, especially for upcoming business and local players.<\/p>\n\n\n\n

The second-hand market also seems to offer a wider range of choice, regarding machine types, models, and manufacturers, but also it offers more pricing options. Allowing for the waiting period between purchasing the equipment and the actual delivery to be avoided.<\/p>\n\n\n\n

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China Growing Investment in the construction industry<\/h3>\n\n\n\n

The world\u2019s major construction machinery makers have been setting up factories and joint ventures in China. Also, regarding the restrictions on foreign investments, high-end hotels, office buildings, international exhibition centers, and the construction and operation of large theme parks have been lifted. This has been done in order to expect to increase the demand for construction equipment in the country, thus driving the construction equipment market.<\/p>\n\n\n\n

The Belt and Road Initiative mentioned above is expected to create increased demand<\/a> for construction equipment. The Belt and Road Initiative (BRI)*, the most recent flagship project of China, has resulted in a significant increase in demand for construction equipment in the country. Although all the construction projects are executed overseas, the machinery is purchased and shipped from China as the government offers to reduce taxes to construction companies that buy the equipment for participating in the BRI*. Kobelco, Tadano, Caterpillar, and Liebherr have been working in increasing their presence in the country, as they anticipate massive demand from the country\u2019s flagship BRI*.<\/p>\n\n\n

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As a result, major companies have been establishing manufacturing factories in different parts of China in order to capitalize on the increasing demand for construction machinery. Although the country’s competitive situation is intense, many global players are competing with local construction machinery manufacturers to increase their share in the market.<\/p>\n\n\n\n

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Industry Equipment in China: a Competitive Landscape<\/h2>\n\n\n\n

China Construction Equipment Market is consolidated with existing players such as Kobelco, Tadano, Caterpillar, and Liebherr, who captured the significant market share in 2019. The market is also dominated by local players such as Sany, XCMG, Zoomlion, etc…<\/p>\n\n\n\n

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Caterpillar research Results on Baidu<\/figcaption><\/figure>\n\n\n\n

Since numerous international and regional players characterize the construction machinery market, construction manufacturers are trying to gain an advantage over their competitors by making joint-ventures, partnerships, and launching new products with advanced technology.<\/p>\n\n\n\n

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The Machine tools<\/strong> segment in China<\/h2>\n\n\n\n

While China continues to import premium tools from developed countries in the near term, the government is keen to raise the localization rate of Chinese mid-range and high-end computer numerical control (CNC)* machine tools to 80 percent by 2020.<\/p>\n\n\n\n

CNC machining involves the use of computers to control machine tools in the manufacturing process. It facilitates the efficiency of China\u2019s strategic industries, such as aerospace, telecommunications, and shipbuilding industries.<\/p>\n\n\n\n

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source<\/a><\/figcaption><\/figure>\n\n\n\n

China is the largest producer, consumer, and importer of machine tools in the world.  China\u2019s imports of machine tools reached 8.74 billion U.S in 2017 most of which are CNC* machinery and core components from Germany, Italy, Japan, and South Korea. Presently less than 20 Chinese companies can manufacture CNC machine tools. Many municipal governments in China have released policies to encourage R&D (Research and development) investments in the sector as well as to compete with key local enterprises, such as Shenyang Machine Tools, China\u2019s largest machine tools manufacturer.<\/p>\n\n\n\n

Agricultural machinery<\/strong><\/h2>\n\n\n\n

China has a plan to produce 90% of its farming equipment and plans to hold a 60% share in the global high-end agricultural machinery market by 2025. China sees the adoption of advanced technologies and methods as crucial to enhance farming activity and gain environmental protection.<\/p>\n\n\n\n

Nevertheless, these ambitions appear to be stretched as China only produces 15% of the agricultural machinery\u2019s global production and is heavily reliant on the import of high-end farming equipment. The Chinese government has thus issued subsidy policies to promote farm mechanization.<\/p>\n\n\n\n

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John Deree on Weibo<\/figcaption><\/figure>\n\n\n\n

These policies have been issued in order to encourage farmers to use high-end equipment, such as tractors, combine harvesters, and cotton pickers. Both Chinese manufactures and non-Chinese brands that manufacture in China are eligible for the subsidy plan.<\/p>\n\n\n\n

In addition, the technologies of mechanized planting, such as vertical axis harvesting machinery, and others are also priority growth sectors for China.<\/p>\n\n\n\n

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Market access barriers<\/strong> for foreign companies in China<\/h2>\n\n\n\n

Since China\u2019s entry into the WTO, the country\u2019s machinery sector has been open to foreign investments, though subject to certain restrictions ;<\/p>\n\n\n\n