Featured Image

Int’l News from the Field: China

China continues its extraordinary manufacturing growth despite the challenges of 2020. The PMI has remained above 50 for nine consecutive months. SAIC and BYD, two of China’s automotive manufacturers, are well ahead of 2019 sales. FDI into China...
Dec 11, 2020

December 11, 2020

China continues its extraordinary manufacturing growth despite the challenges of 2020. The PMI has remained above 50 for nine consecutive months. SAIC and BYD, two of China’s automotive manufacturers, are well ahead of 2019 sales. FDI into China, despite what one might have predicted, is 4% above last year. For more industry intel and tidbits, read on.

  • The Regional Comprehensive Economic Partnership (RCEP) trade agreement was signed on Nov. 15, 2020. It is made up of 10 Southeast Asian countries as well as South Korea, China, Japan, Australia, and New Zealand. The RCEP countries represent 30% of total global population and 29% of the global GDP.

  • For the first three quarters of 2020, trade between China and the ASEAN countries was $481 billion, a 5% increase from the same period in 2019. China’s direct investment in the ASEAN countries had a YOY increase of 77%, while ASEAN’s direct investment into China increased by 7%. The ASEAN is the largest trading partner of China.

  • The PMI for November was 52.1 and has now been above 50 for nine consecutive months.

  • Watch AMT President Doug Woods discuss China opportunities and lessons learned:

  • BYD Co. Ltd. (Build Your Dreams), who started in 1995 manufacturing cell phone batteries, sold 53,943 automobiles in November. Their YOY sales have increased 31%. They have sold 26,690 electric vehicles so far this year, with 138% YOY growth.

  • Shanghai Automobile Industry Corp (SAIC) had total sales in November of 420,000 units. Total sales for the year through November was 4,139,800 units! This is a 12% increase from 2019.

  • The Ministry of Commerce reported that FDI into China through October was $115 billion, which is about 4% higher than the same period in 2019.

  • Two more major in-person exhibitions successfully took place. Auto Guangzhou, held November 20-29, had a total space 220,000 square feet. Bauma China (construction equipment), held November 24-27 in Shanghai, had 3 million square feet with almost 3,000 exhibitors, including 500 major international brand names.

Below are more data points from AMT’s Shanghai Tech Center’s Market Access and Sales Support (MASS) program. Each point represents specific known investments resulting in manufacturing technology sales opportunities:

  • Annual output of 1 million units of electrical power tools

  • Annual output of 3.5 million kits of high-end automotive aluminum alloy components

  • Annual output of 150,000 units of high-precision servo motors

  • Annual output of 30,000 sets of elevators and escalators

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

Fred Qian
General Manager - Shanghai Technology and Service Center of AMT
Recent international News
Foreign direct investment into China, which hit a 15-year low in 2020, is back on track, and the country’s GDP has increased almost 13% YOY. Sales of traditional internal combustion automobiles are down significantly from a year ago, while electric ...
The carbon peak and carbon-neutrality strategies in China will bring unprecedented green investment demands and huge opportunities in the coming decades. To achieve the goal of carbon neutrality by 2060, it is estimated that $21 trillion ...
AMT international staff reported enthusiasm from attendees for all things manufacturing, from improvements in foundational manufacturing on an incremental scale to the radical innovations that enable our industry to take giant leaps.
China’s traditional auto production numbers remain impressive while the EV stats are eye-opening. Even well-known home appliance companies are getting in the game to become tier-one EV suppliers. Construction machinery sales grow thanks to ...
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....
Similar News
By Hubert Sawicki | Dec 21, 2020

It has been a particularly painful 2020 for machine tool sales in Europe due in no small part to reduced auto sales and output. On the bright side, the lull has allowed companies to focus on EV and hydrogen programs that will help drive the industry in...

2 min
By Patrick McGibbon | Dec 15, 2020

In the last days of October, AMT’s annual MTForecast event was delivered virtually for the first time in its 48-year history. The format may have been different, but the value was as great as ever, even if the news was bittersweet...

3 min
By Amber Thomas | Mar 04, 2020

What progress can manufacturers expect from Washington in 2020, especially given that it’s an election year? AMT provides input on issues that support R&D and innovation; increase global competitiveness; and build a Smartforce as dictated by...

3 min