With a forecasted 8.1% GDP growth for 2021, China saw the first quarter GDP jump 18% YOY due to the low base of 2020. The manufacturing PMI has remained above 50 for more than a year and is expected to stay that way. China is determined to become the dominant world player in the new intelligent electrical vehicle (EV) space, touting 11-figure investments! For more industry intelligence and other tidbits, read on.
China’s manufacturing PMI in April was 51.1, making it 13 consecutive months above 50, the benchmark for economic health in manufacturing.
According to the China National Bureau of Statistics, the GDP for the first quarter of 2021 saw an 18% increase from a low base in the same period in 2020. Perhaps of more significance, it was a 10% increase from pre-pandemic 2019. The Asian Development Bank (ADB) forecasts the GDP to expand by 8.1% in 2021.
Robots and automation, micro-computer equipment, and new energy industries are all seeing double-digit growth.
SAIC Motor, China’s largest state-owned carmaker, announced they will invest more than $46 billion over the next five years for further innovation and development of technology for intelligent electric vehicles. This continues the trend of massive investments by this company in the EV space.
The new partnership between Chinese tech giant Baidu and automaker Geely announced that they will invest about $8 billion over the next five years to produce connected, autonomous EVs. The first model’s launch is planned for 2023, with another in 2024, and another in 2025.
Auto Shanghai 2021, a large international auto industry exhibition, took place in Shanghai on April 21-28. With almost 3.6 million square feet of exhibits and more than 1,000 exhibitors from around the world, the successful show reinforced the growth of vehicle and component manufacturing in the country and the trend of upgrading the industry with the latest in advanced manufacturing technology.
According to the China Machine Tool & Tool Builders’ Association (CMTBA), the sale of foreign machine tools into the China manufacturing market saw double-digital growth in 2020.
Growth in manufacturing technology sales is forecast for 2021, particularly in automotive (including new energy vehicles), construction machinery, aerospace, industrial robots, die & mold, electronics, medical devices, and agricultural machinery.
