“Because of huge internal demand and investment, there will be a rapid increase in the production of medium- and small-scale agricultural machinery, of material-handling machinery with a high performance-price ratio, and of low-end food & beverage machinery” IMS Research analyst, Wilmer Zhou, commented in the report “The China Machinery Production Yearbook – 2011."

China is already one of the biggest producers of agricultural machinery in the world. A policy of purchase subsidy has been implemented over six years; this subsidy increased to 14.49 billion RMB in 2010 from 13 billion RMB in 2009. The subsidy policy will continue to drive agricultural machinery production in the coming years; since, with 800 million farmers in China, developing modern agriculture and improving rural productivity is a critical Government task.

The Chinese Government has been spending 9% of its GDP on public works projects (such as the massive high-speed China railway project and the West-East natural gas transmission project) to improve the country’s infrastructure. Soaring public and private investment in China has led to a building boom in airports, subways, shopping malls, housing and public infrastructure. The material handling machinery sector is one of the biggest beneficiaries.

The huge population in China continues to drive the demand for food, beverage, and tobacco processing machinery and related packaging machinery. With the increasing numbers of the middle class and the wealthy in China, IMS Research notes the demand not only for basic machinery with a high performance-price ratio but also for advanced processing and packaging machinery.

With continuing industrialization and urbanization in China, IMS Research forecasts that its production of machinery production is in a phase of steady growth; revenues from production machinery will account for 24% of the world total in 2014. By then, China will be competitive in agricultural machinery, materials-handling machinery, textile machinery, plastics & rubber production machinery, food & beverage machinery, wind turbine machinery, and machine tools.