Chinese Construction Machinery On the International Market

The building equipment made by China-based enterprises includes a full selection of purpose-designed machinery. Along with diggers, loaders and construction cranes, there is also railroad construction machinery, various-purpose trucks, building hoists, pneumatic equipment etc.

The capacity of the Chinese construction machinery market in 2008 (including the sales of pneumatic equipment and other stationary construction machinery) has been estimated by experts at $38,6 billion. Last year the Chinese construction machinery market soared by 30%. Yet, despite the tremendous rise, some experts do not consider the Chinese market a profitable sector to make investments in because of the low price for the building equipment produced in China. The cost of the Chinese machinery is less than 50 - 150 % of the price for imported machinery, which draws a lot of Chinese buyers.

Chinese building equipment and foreign capital

Today overseas enterprises choose to cooperate closely with Chinese producers. The majority of the prosperous companies of building machinery brought their own brands to China. After a while they began to cooperate with their Chinese partners. This strategical scheme helps foreign producers have a closer look at the Chinese construction equipment sector and ensure the sales of their production but under another trade mark. As a result, foreign producers have lowered the cost of their production and at the same time have remained competitive on the market. Small Chinese producers that failed to cooperate with overseas business partners were knocked out of the competition. The close cooperation between Chinese manufacturers and their overseas counterparts has turned out very profitable for both parties. For example, 2 big companies SANY and Zoomlion earned approximately $2, 86 billion in the year of 2008. More than that, Zoomlion has bought the European manufacturer CIFA and, thus, has become the leading producer and supplier of concrete mixers in the world.

Recently the export of the Chinese machinery has decreased, mainly due to the decline in the demand for building equipment on the largest markets, such as the USA, Europe and Russia. Manufacturers of forklift and front end loaders have suffered greatly. The matter is the majority of highly developed nations have suspended some big building projects due to the economic nosedive, which has caused the decrease in the demand. A number of preventative steps have been taken by the Russian government to shield Russian producers from the inflow of the Chinese products.

Therefore, during the coming years Chinese companies will be producing machinery mostly for the domestic market, at least till the world's economic fall comes to an end. The sector has been granted a $570-billion financial aid. Yet, the money is not enough for all manufacturing companies and they look forward to cooperation with foreign companies.

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China is the biggest East-Asian country. It is a quickly developing state, too. The Chinese used construction equipment is well-known world wide. Here you can discover a whole selection of Chinese-produced dozer parts.