Chinese construction machinery is popular overseas

In the past two years, the Chinese construction machinery market has experienced rapid growth that has not been seen for many years. In 2017, the industry's operating income reached 540.3 billion yuan, an increase of 12.7% compared with 2016; in 2018, it will continue to maintain rapid growth, and the whole industry will reach a market scale of around 600 billion yuan. Sales of major products increased by 45%, 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%, and major product sales increased by 25.5%. In the first quarter of 2019, market sales continued to perform well, with total product sales increasing by 15.2%.

The achievements of China's construction machinery industry are inseparable from the good overall environment of the Chinese economy. According to data released by the National Bureau of Statistics on March 31, the manufacturing PMI for March was 50.50, higher than the expected 49.60, a five-month high, and the month-on-month growth 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%. These policy dividends will provide strong support for the stable development of the construction machinery industry in 2019 and up to now.