February 15, 2021
As China takes a break this week to celebrate the new Year of the Ox, the news for the automotive sector, particularly new energy vehicles, continues to be overwhelmingly positive. The same can be said for construction equipment, as infrastructure projects continue to support the continued urbanization in the country. The Greater Bay Area plan is underway, and a new manufacturing technology show has been created to help suppliers tap into this new regional market. For more industry intel and other tidbits, read on.
Despite the COVID-19 pandemic challenges, China’s GDP grew by 2.3% in 2020.
The manufacturing PMI in January was 51.3, continuing its run above 50 for the 11th consecutive month.
Foreign Direct Investment (FDI) in China reached $163 billion in 2020, representing an increase of 4% YOY, according to data from the United Nations Conference on Trade and Development (UNCTAD).
With the continued trend of urbanization, massive infrastructure projects continue to create opportunities in the booming construction machinery sector. One of the main indicators, excavator production, grew by 36.7% in 2020, with a total of 401,000 units, according to the China Construction Machinery Association (CCMA).
The Greater Bay Area (GBA) plan, which includes Hong Kong, Macau, and nine cities in the Pearl River Delta area, has a total planned investment of $68 billion. The idea behind the plan is to foster growth by linking the area economically and physically and by promoting and supporting new technology and innovation. There will be new infrastructure projects, including 500 miles of new rail, new bridges, new roads, and other improvements. Many tech giants like Foxconn, Huawei, Tencent and BYD have already begun plans to locate major facilities there. For suppliers of manufacturing technology to tap into this market, a new trade show, AMTech 2021 (International Advanced Manufacturing Technology Show), will take place Oct. 11-14, 2021, in Shenzhen.
The China Association of Automobile Manufacturers (CAAM) reported that the Chinese automobile industries exceeded the target of producing 25 million vehicles in 2020. This performance is much better than the forecast in early 2020, when the goal seemed unachievable due to the pandemic.
The production of new energy vehicles (NEV) reached 1.4 million units in 2020, a 7.5% increase from 2019. CAAM estimates that the total vehicle production in 2021 could exceed 26 million units, with NEVs representing almost 2 million units, a 40% annual growth rate.
For more information on these exciting opportunities and others, contact Fred Qian at fredqian@AMTchina.org.
