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Dec 26, 2019

With the advent of 2020, the national infrastructure is also expanding, and various policies have been issued, which is good news for construction machinery. 

However, some experts believe that there are still variables in foreign incremental demand, while the decline in domestic investment growth is a more definite matter. Therefore, it can be concluded that the construction machinery industry fundamentals will not bottom in 2015 and will be difficult to rebound. All enterprises in the adjustment period are practicing internal skills and seeking upgrading. Whoever has strong competitiveness will be able to take the lead in getting out of the predicament.

The "one belt and one road" economic strategy is undoubtedly a major positive for the domestic enterprises in a downturn. This is the national level through the construction of the environment and policy to promote China's equipment manufacturing industry to the world. In view of the current unsatisfactory situation of the domestic market, some enterprises have turned their eyes to overseas markets. For a time, the overseas market has become the "Tang Monk meat" that everyone wants to eat.

Experts say it is not easy to develop their position in overseas markets. It is understood that in recent years, in order to better explore the overseas market, domestic construction machinery enterprises have increased their investment efforts, through local investment in the construction of factories, to seek local development. But it also encounters many obstacles on its internationalization journey, such as anti-monopoly and national economic security.

Experts pointed out that because of the high degree of similarity and low technology content of some products of domestic enterprises, the impact on local traditional industries has been caused, which has caused some countries to restrict the import of Chinese products by means of increasing certification, improving technology fortress and regulating tariffs. Last July, for example, two domestic bulldozer manufacturers issued announcements suggesting the risk of anti-dumping investigations from overseas markets. The incident arose from the decision of the Eurasian Economic Commission's Internal Market Protection Department to initiate an anti-dumping investigation on tracked bulldozers originating in China under 250 horsepower exported to the Ohio-Kazakhstan White Customs Union countries at the request of the Chelyabinsk Tractor Factory. If the investigation is confirmed to be true, a certain amount of anti-dumping duty will be imposed on the series of products, which will inevitably affect the export of Chinese bulldozer products to the region.

In addition, more and more countries have introduced a series of measures to restrict imports in order to cultivate and support their manufacturing industries. Last July, Russian Deputy Minister of Industry and Trade Sergei Zib announced that Russia planned to reduce its dependence on imports of equipment and machinery from 90% to 50% and 60% by 2020. Vietnam's government and enterprises also wanted to accelerate technological innovation in order to gradually get rid of their dependence on imported machinery from China. Therefore, the road of internationalization is bound to require fresh blood to open up. This forced Chinese construction machinery enterprises to get rid of the shackles of "Made in China" and increase the research and development of new products and technologies.

Experts believe that not all companies in the industry will be able to make smooth progress in developing overseas markets relying on the strategy of "one belt and one road". Apart from political reasons and competition among overseas giants, economic growth in many countries is limited, and they are totally expecting the expansion of overseas markets, which is unrealistic for the domestic construction machinery industry.

Experts emphasize that overseas demand is break-point, which is quite different from the sustained one-sided demand driven by 4 trillion yuan in China. Overseas market is not the "savior" of excess capacity of construction machinery, although export orders of some leading export enterprises such as Xugong, Liugong, Sany Heavy Industry and Zhonglian Heavy Industries are expected. Increase, but most small businesses may not share the strategic dividend of "one belt and one road".

At present, the market demand has shrunk dramatically, the market has a large amount of reserves, and the production capacity is seriously excessive. With the increase of enterprise operating costs and financial costs, the construction machinery industry is facing a severe test of survival and development. In the cold wind and cold rain, the individual's weakness and vulnerability become increasingly prominent. With the change of the market, enterprises begin to realize that only by supporting each other can they walk more steadily and farther. Therefore, group heating becomes a new means of survival for small and medium-sized enterprises in the future.

As a traditional industry, the construction machinery industry is the most important part of the development of national basic engineering, and the construction of any project can not be separated from the construction machinery. Now, under the guidance of the national "along the way" policy, the construction machinery industry has begun to improve. According to estimates, the total population along the line is about 4.4 billion, and the total economy is about 21 trillion US dollars. In the future, national strategies such as urbanization and water resources will also provide unprecedented opportunities for construction machinery. The construction machinery industry will surprise us in 2015.