Along with the acceleration of Chinas industrialization and urbanization courses, the global machinery industry is also quickening the step to transfer towards China. The added value of Chinas machinery industry slowly grew than the country’s GDP before 1999, but accelerated after that.

During the year of 2002 and 2003, the growth rate of added value was twice and 2.6 times of GDP respectively, and even reached 32% in the first half of 2006, nearly 3 times of GDP. The proportion of added value in machinery industry against GDP was approximately 6% in 2005 and near 7% in 2006.

In recent years, the machinery industry shared about 21%-26% of Chinas gross industrial output value.

Generally speaking, Chinas machinery industry kept a good momentum in 2006, and the subsidiary industries had various development trends. Taking construction machinery as an example, the construction machinery industry resuscitated vigorously in 2006 with a growth increase entirely exceeding the anticipation of the beginning year. It is reported that from Jan to Sep 2006, the increase of whole-industry sales income, total profit and export value was 34.12%, 121.34% and 48.62% over the same period of last year respectively. Considering from subsidiary products, the sales amount of forklift trucks, cement machinery, scraping and transporting machinery and compaction machinery increased by 36.42%, 24.15%, 23.79% and 8.55% separately.

Along with the implementation of China’s macro-control policies, the estimated growth of investment in fixed assets will slow down to around 20% in 2007, and the machinery industry will gradually fall into heating-up status from over-heated status. In 2007, the aviation equipments and railway equipments is predicted to grow rapidly, also machine tools, heavy & mining machinery and construction machinery will increase at a comparatively high speed.