Down Trend of China Machinery Exports

The industry insider believes that apart from the application of relevant supportive policies, the leading enterprises should take this opportunity and take the initiative to adjust product structure, upgrade and implementation.

According to the information provided by China Machinery Industry Union (CMIN), although during the whole year of 2008 the growth rate of import and export of machine-building industry has remained at more than 20%, but slowed to 10% or so compared with 2007. Even the situation has changed to monthly decline from the second half of the year, and the trend has continued to accelerate.

From Jan to Dec of 2008, the accumulated total amount of import & export in machinery industry was USD437.328 billion, growth rate as 20.91%. Of these, import was at 15.44% increase in sum of USD194.829 billion; and export was at 25.70% up of USD242.499 billion.

As per analysis from CMIN, compared with 2007, import & export of machinery industry in 2008 showed some features as below: first, the import & export growth began to fall back monthly from the second half of the year; secondly, export growth in 2008 is not steady as 2007, from 1 - 3 month the growth rate began to decline monthly, till Dec it has dropped to 25.7%, while in the same time of 2007, it was 40.9%; thirdly, the import growth rate also showed a down trend month by month, till Dec it was 15.44 %; finally, the export growth rate dropped much faster than the import, making the growth gap between import & export became smaller.

In addition to substructure and heavy mining machinery industry, the export average annual growth rate has dropped over 2007 for other 11 industries. The fall-back rate was more than 30% for vehicles and office equipment industries; it’s at 10-20% range for diesel engine, petrochemicals, food packaging and other machinery, engineering machinery and machine tool industry.

Statistics show that the single-month export amount of machinery industry maintained a 24% growth from March for 8 months, but from Oct to Nov, the export growth rate fell much from25.81% to 2.74%, slowed down by 23.07%. And in Dec it kept dropping to 1.44%.

Besides, the analysis showed that China’s machinery industry has maintained steady growth of trade volume with major countries, but the growth rate was in overall decline.

The slowing down of world major economies has resulted in demand decline, which has impacted on China mechanical and electrical industries. At the previous warning meeting of machinery and equipment industry, CCCME stated the export orders for finished goods have decreased more or less, and the growth rate of processing trade also declined.