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International News From the Field: China

As China returns to a pre-pandemic state of affairs, manufacturing is back in full bloom. Infrastructure and regional development plans are attracting major investment and bode well for the OEMs that supply the necessary equipment and materials...
by Fred Qian
Sep 18, 2020

As China returns to a pre-pandemic state of affairs, manufacturing is back in full bloom. Infrastructure and regional development plans are attracting major investment and bode well for the OEMs that supply the necessary equipment and materials. This would include railway, aviation, telecom, and construction. The auto industry is posting impressive numbers with 12 million vehicles built between January and July. In-person trade shows are back, and recently, three major manufacturing shows were held with impressive exhibitor and visitor metrics – CIMES 2020 in Beijing, CIIF 2020 in Shanghai, and SIMM 2020 in Shenzhen. For more intel, read on.

  • A new railway construction plan was approved with a total investment of $68 billion. The objective is to reduce travel time between major and secondary cities.

  • According to the China National Statistics Bureau (CNSB), the manufacturing PMI for the month of August was 51% and has been above 50% for five straight months.

  • The new Greater Bay Area (GBA) plan, which includes Hong Kong, Macau, and nine cities in the Pearl River Delta area, will require huge infrastructure investments that will trickle down to major opportunities for manufacturing technology suppliers. $85 billion is earmarked to expedite digital transformation and infrastructure in the area.

  • The General Customs Administration reported that the total imports of machine tools for the first half of the year was $6 billion, down 16% from the same period in 2019.

  • The second quarter GDP growth was 3.2%, substantially up from the first quarter at -6.8%.

  • The CNSB also reported that in July, 32 of the 41 industrial classifications posted an increase in profits from June. Automotive, electronics, and high-tech manufacturing posted higher increases than the same period in 2019.

  • The China Association of Automobile Manufacturers reported that in the first seven months of the year, the total production volume was about 12 million units, representing a 22% increase from the same period in 2019. Half of these units were domestic brands, indicating a strong local demand.

  • The Ministry of Industry and Information Technology reported that from January through July, the growth rate of electronic and information industrial value added was 6.7% higher than the same period in 2019. This statistic covers the major manufacturing segments of telecommunication equipment, electronic components, special electronic materials, electronic devices, and computers (laptops and tablets).

AMT’s Shanghai Tech Center analyzed their database of sales leads that are part of the Market Access and Sales Support program (MASS) and confirm a production demand through the end of 2021 for:

  • 100 million precision auto parts

  • 50 million crankshafts

  • 43 million automotive synchronizing systems

  • 1 billion precision stamped parts

  • 600 million cellphone camera optical lenses

  • 40 million electronic parts

For more information, contact Fred Qian (fredqian@AMTchina.org).

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Author
Fred Qian
General Manager - Shanghai Technology and Service Center of AMT
A graduate of Tong Ji University in Shanghai, Mr. Qian holds both a BS and Master’s Degree in mechanical manufacturing technology. With nearly 30 year ...
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