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International News From the Field: China

Are there still manufacturing opportunities in China? The world’s second-largest economy faces setbacks from the pandemic, uncertainty in real estate, and weakened global demand for its exports. For more industry intel and other tidbits, read on.
Dec 20, 2023

The official National Bureau of Statistics (NBS) manufacturing PMI for China edged down to 49.4 in November 2023, up 2.92% year over year but down 0.2% compared to October.

According to the CMTBA, Chinese companies increased 4.3% YOY in business income, but total profit was down 11% YOY. New orders for metalworking machines fell 2.8% YOY, whereas in-hand orders increased 0.3% YOY.

According to the NBS, from January to October, the output of large-sized metal-cutting machine manufacturers was 506,000 units, up 3.7% YOY, while the output of metal-forming machines was 127,000, down 17.1% YOY (from January through October).

Also, according to Chinese customs data, machine tool imports and exports totaled $26.5 billion (from January through October), down 3.9% YOY. Imports accounted for $9.27 billion, down 11.1% YOY, while exports reached $17.23 billion, up 0.5% YOY.

As per the China Association of Automobile Manufacturers (CAAM), automobile production and sales reached 3.09 million units and 2.97 million units from January to October 2023, up 7% and 4.1% month over month and up 29.4% and 27.4% YOY, respectively. Production and sales reached the monthly record high for three consecutive months since September 2023. From January to November, automobile production and sales totaled 27.11 million units and 26.94 million units, up 10% and 10.8% YOY, respectively.

The production and sale of EVs reached 1.07 million units and 1.03 million units, up 8.7% and 7.3% MOM, 39.2% and 30% YOY. The monthly market share reached 34.5%. From January to November, the production and sale of EVs totaled 8.43 million units and 8.30 million units, up 34.5% and 36.7% YOY, with a market share of 30.8%.

In November, automobile exports reached 482,000 units, down 1.1% MOM, up 46.3% YOY. Exports reached 4.41 million units from January to November, up 58.4% YOY.

A few recently announced projects and investment news items are listed below.

  • Chinese construction machinery manufacturer Zoomlion announced an investment of $830 million to build production facilities and ancillaries in Maanshan. The project will last two years, with an estimated completion date of 2025.

  • Xinzhi Group will invest $182 million to build production capacity in Chongqing to achieve an annual output of 3 million rotor and stator assemblies for EV motors.

  • Delijia Transmission Technology will invest $2.08 million to manufacture gearboxes for wind energy with a capacity of over 8 MW, and the company projects an annual output of approximately 1,000 units.

  • Zhuji Jiehui Science & Technology Co. announced an investment of $485 million to build production facilities for e-driving systems for EVs in Zhuji.

  • Weichai Holding Group will invest $7.65 billion in Yantai to build a manufacturing facility for batteries and core components of EVs. Plans are to have a fully operational facility by 2030.

  • Luxshare Precision Industry announced an investment of $138 million to build production facilities for automotive electronics in Fuyang, Anhui.

For more information, please contact Fred Qian at fredqian@AMTchina.org.

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Author
Fred Qian
General Manager - Shanghai Technology and Service Center of AMT
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