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Strong desire to “go globalâ€
“Like textiles, household appliances, and other enterprises, it is inevitable that Chinese construction machinery companies will 'go abroad', which is very beneficial to the development of the country. The going out of the machinery industry can also bring about the country’s entire industrial chain and logistics chain. To a very big promotion.†Wu Qijin, deputy director of the International Cooperation Department of China Machinery Industry Federation, told the China Economic Times reporter.
At present, China’s output of construction machinery is second only to the United States and Japan, ranking third in the world, and it is developing rapidly in terms of exports. In the past two years, the export scale of China's construction machinery has grown at an annual rate of around 50%, and the export volume of construction machinery has also counted hundreds of millions.
In the first 7 months of this year, the total export value of China's construction machinery industry increased by 72.20%, and the export growth rate was higher than the industry's sales growth rate by 37.88%. Moreover, in the past five years, the sales volume in the global market has expanded by 16.72%, while the sales volume in the Chinese market has expanded by 236.96%, far exceeding the global market average. Moreover, with the growth of exports, exports are gradually becoming an important driving force for the growth of the performance of China's construction machinery industry.
Zhang Xiaolin told the reporter that construction machinery companies used to participate in international professional exhibitions in the past mainly for visits and inspections. They rarely had “actions.†However, in 2004, domestic construction machinery exhibited large-scale exhibits overseas and participated in three major international mechanical engineering expositions. One of the “bauma2004†in Munich, Germany, was attended by 42 companies including Xugong, Liugong, and Xiagong. They exhibited at the exhibition’s highest level of more than 60 mechanical engineering products at the time and set off in Munich. China stocks. Afterwards, domestic enterprises have received many buyers from abroad for many consecutive times.
"Now the export desire of enterprises is getting bigger and bigger." Zhang Xiaolin revealed that domestic construction machinery companies are actively registering to participate in next year's Munich exhibition, but due to the limited exhibition area, there are currently dozens of companies in the country still waiting in line. " Admission ticket." Zhang Xiaolin said that companies going abroad to participate in the exhibition can see that the company’s export aspirations will continue to “heat up.†The industry organizations will comply with the requirements of enterprises and increase the promotion of export.
It's time for companies to "go out"
"This year, the trade surplus in the construction machinery import and export trade is mainly due to the increase in exports and the decrease in imports." A person in charge of the China Mechanical and Electrical Commerce Association's engineering and agricultural machinery branch told reporters that the increase in China's construction machinery exports is due to the government's domestic projects. The machinery industry has adopted relevant supportive policies, and some domestic companies have gone abroad to participate in international-level construction machinery exhibitions, which has enabled the international market to better understand China's products.
“This is not due to the declining demand in the domestic market. In recent years, the world’s top engineering machinery companies, such as Caterpillar and Komatsu, have entered the Chinese market to invest and set up factories and produce products, which indirectly reduces the amount of imports.†With regard to the reduction of imports of construction machinery, Zhang Xiaolin said that the impact of the country’s macroeconomic control in 2004 and 2005 has slowed the growth of the domestic machinery engineering market. Many companies have turned their sights on foreign markets and have gradually gone out of the country. Therefore, the export of enterprises in recent years has developed very rapidly.
In analyzing this trade trend, Wu Qijin also pointed out that “the investment in various aspects such as power generation equipment is relatively large, and the country’s investment-driven growth slows down. Especially for multinational companies, the equipment entering China has already entered, and the input volume of equipment must be reduced. At the same time our equipment began to go out."
Three major problems plague companies "going out"
Although domestic construction machinery companies started to go overseas, “going out†still faces some problems.
First, China's construction machinery industry started shortly afterwards. China's construction machinery products have few core technologies with completely independent intellectual property rights, and there are many "clone" products. They are easily subject to infringement charges or unfounded, and exports are constrained. In response to these problems, Zhang Xiaolin stressed: "Don't simply plagiarize other people's things, make innovations, and do a reasonable evasion. We must increase investment in science and technology research and development before we can establish our own core competitiveness."
“Our enterprises must pay attention to timely declaration and protection of their own intellectual property rights. We will gradually take a place on the international market in this way.†Wu Qijin said that innovation based on introduction, digestion, absorption, and counterfeiting is China. A very important way to achieve industrialization. “But the level of patents we apply now is not high, mainly because of the shortage of foreign language talent in our country.â€
At present, the low price is an important competitive advantage of China's construction machinery products in the international market, but at the same time it is a time bomb that may trigger importing countries to launch anti-dumping investigations on Chinese products at any time. “Developing high-end products and maintaining a certain price space for export products are the main methods for companies to avoid being identified as low-cost dumping by importing countries,†the experts pointed out.
Second, domestic companies must also be familiar with relevant foreign laws and standards and prevent foreign "technical barriers." It is understood that in order to protect the domestic market, many countries have established strict standards and regulations, and even use laws to specify that imported goods must meet the standards of the importing country. Technical barriers often exist in the form of various certifications, technical regulations, agreements, and standards. In order to enter mature markets such as Europe and the United States, it is a major challenge for our country's engineering machinery products in environmental protection, safety performance, and product quality.
In addition to related certifications, China’s products have a certain gap in quality compared with those of countries such as Europe, the United States, Japan, and other countries. The average time between product failures and overhaul periods in China is far less than the international level. The difference in quality has caused China's construction machinery products to be hindered by layers at the time of entering high-end, mature markets, and it is also difficult to have a beautiful performance in terms of prices.
Faced with these problems, experts unanimously suggested that companies can only strengthen their own R&D capabilities and strive to improve product quality so that they can fundamentally overcome the barriers to technical barriers.
Thirdly, the problem of “internal fighting†in which Chinese construction machinery companies compete with each other in foreign prices has not been resolved. Under such circumstances, foreign companies have already formed a coordination mechanism within the industry, and the export market restricts this kind of competition that is harmful to others. . In this regard, China is still doing very poorly.
“The continued appreciation of the renminbi is not conducive to the export of products, and the exchange loss of the exporting enterprises has increased due to the appreciation of the local currency, affecting the profitability of export products.†Experts believe that the appreciation of the renminbi is also a problem that mechanical engineering companies should pay attention to.
"Going out" needs to be played
The overall advantages of construction machinery industry
“The most obvious development trend of the Chinese construction machinery industry is internationalization.†A person in charge of Shanghai Diesel Engine Co., Ltd. told reporters that China’s future financial environment and market policies will lead more overseas companies to enter the Chinese market, whether directly China's investment in building factories or products entering the Chinese market through import and export trade, and the performance of international construction machinery companies in the Chinese market will become more and more eye-catching.
The overall strength of individual construction machinery enterprises in China is in a weak position, and competition, especially exports, will become increasingly difficult. Therefore, how to integrate strengths, exert comprehensive advantages, and expand export share are important issues faced by current construction machinery companies.
"We have in-depth cooperation with the engineering machinery group that has developed strength to open up the industrial chain and use the entire industry chain to compete with internationally renowned engineering machinery and powerful companies to enable our country's engineering machinery products to stand out in the global competition." Shanghai Diesel Engine Co., Ltd. Responsible person said.
Experts said that in 2006 and 2007, it was very favorable for the export of construction machinery industry, because during the “Tenth Five-Year Plan†period, all enterprises had established a good foundation for overseas agency networks. The "guerrilla warfare" was changed to "position warfare" and the pre-sales and after-sales service systems in the region were expanded and strengthened. As long as the quality of our products is guaranteed, the cost-effectiveness of our products still has a great advantage. "The current international construction machinery market is also very beneficial to us.
It's Time for Construction Machinery Enterprises to "Go Out"
"It is expected that the entire machinery industry in 2006 will export US$4.5 billion and import US$4 billion, which is expected to be the first year for the trade surplus of the mechanical engineering industry.†Zhang Xiaolin, vice chairman of the China Council for the Promotion of International Trade Machinery Industry, recently accepted the report of the China Economic Times. Said during the interview. In 2006, China's construction machinery import and export trade saw a significant year-on-year increase. By September, it had exported 3.59 billion U.S. dollars, an increase of 74.2% over the same period of last year. "There will be an ever-expanding trend in the next few years."