Export tax rebates increased for machinery products
December 29, 2008
 Just today we have underlined totally 3-phase the tax rebate hikes put into effect phase by phase. Very same day, the forth phase of tax rebate increases has been published.
The new 4th phase adjustments covering machinery products. Here is the news: BEIJING, Dec. 29 (Xinhua) — China will increase the export tax rebates for some machinery products as of Jan. 1, 2009, in a bid to alleviate cost burdens on exporters, the country’s taxation watchdogs said Monday. The rebate hikes will involve 553 types of high-tech and high value-added mechanical and electrical products, the Ministry of Finance (MOF) and the State Administration of Taxation announced. Export tax rebate rates for industrial robots and inertial navigation systems for aviation use will be increased to 17 percent, from 13 percent and 14 percent respectively. The rebate rates for exported motorcycles and sewing machines will rise to 14 percent. Their current rebate rates stand at 11 percent and 13 percent respectively. “The move will help ease the sufferings of Chinese exporters and boost the country’s confidence in fighting the financial crisis,” the MOF said in a statement. It was China’s fourth rebate hike on exported products this year, and one of several government’s measures to counter the global economic downturn that has dampened foreign demand. The most recent increase took effect on Dec.1, covering 3,770 items of labor-intensive, mechanical and electrical products, or 27.9 percent of the country’s total exports. The previous two rebates were made in August and November. Official data showed China’s November exports declined year-on-year by 2.2 percent to 115 billion U.S. dollars, the first monthly decline since June 2001. Before that, export growth slowed from 21.5 percent in September to 19.2 percent in October. China levies value-added tax on most products, but refunds varying amounts of that tax on goods that are exported. The government usually adjusts the size of export tax rebates for different types of goods when it is trying to encourage or discourage growth in particular industries. |
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China Machine Tool Industry Research 2008
October 13, 2008
China Machine Tool Industry Research 2008
http://www.reportlinker.com/p091023/China-Machine-Tool-Industry-Research-2008.html
China’s machine tool industry plays an important role in world machine tool industry in recent years. In the aspect of output value, China has accounted 1/4 of the world machine tools. Therefore, the healthy development of China’s machine tool industry will promote the world machine tool industry continues to maintain a rapid development.
According to the National Bureau of Statistics data of whole machine tool industry, in 2007 the 4291 manufactories achieved RMB 274.77 billion in industrial output value, up 35.5 per cent year-on-year; RMB 268.1 billion of sale revenue, an increase of 36.2 per cent year-on-year; throughput of 97.6 per cent, an increase of 0.5 per cent year-on-year.
In 2007, the output of metal-cutting machine tool was 606,835 sets, an increase of 11.7 per cent year-on-year, among NC metal-cutting machine tool 123,257 sets, an increase of 32.6 per cent year-on-year; forming machine tool 172,766 sets, an increase of 9.2 per cent year-on-year, among NC forming machine tool 3,011 sets, an increase of 53.7 per cent year-on-year; Woodworking machinery production and casting machinery 19.2 per cent and 15.4 per cent year-on-year respectively, metal cutting tools fell 0.4 per cent year-on-year.
Machine tool export has continued to grow rapidly. In 2007 it made $5.2 billion, up 36.2 per cent year-on-year, including metal processing machine tool $1.65 billion, increased 39.2 per cent year-on-year, NC metal processing machine tool $500 million , an in crease of 48.2 per cent year-on-year, accounting for 30 per cent of the metal processing machine tool, metal-cutting machine tool $1.22 billion, up 31.6 per cent year-on-year, forming machine tool $430 million, up 66.5 per cent year-on-year.
In 2007, the imports of machine tool was $11.77 billion, an increase of 5.7 per cent year-on-year, among metal processing machines tool $7.07 billion, a decrease of 2.4 per cent year-on-year. China’s foreign trade deficit of metal processing machine tool reached $5.42 in 2007, lower than the same period last year $6.06 billion.
Considering the overheated economy and higher inflation, the central government has tied the monetary policy, which has already affected on some investments, particularly small and medium-sized machine tool investors. China’s machine tool industry is expected to slow down, but, on the other hand, high-value-added products such as NC machine tool, large and heavy machine tool will still keep a strong growth, especially the state key projects and 16 major science and technology projects will boost the domestic demand for high-technical NC machine tool. China is expected to maintain a strong demand for NC machine tool in the next three to five years; in particular the large-scale NC machine tools will remain a 30 per cent growth.
Contents1 The Circumstance of Global Machine tool industry1.1 Production1.2 Consumption1.3 Import and Export1.3.1 Export1.3.2 Import1.3.3 Total Amount of Imports and Exports1.4 Summary2 The Circumstance of China’s Machine Tool Industry2.1 The Performance of the whole Industry2.2 The Products of Metal-Cutting Machine Tool2.2.1 Output2.2.2 Value of output2.2.3 Value of output/per unit2.3 Import and Export of Machine Tool Industry2.3.1 Import and Export Amount2.3.2 Export destination2.3.3 Import region2.3.4 Export Products2.3.5 Import Products2.4 The competition pattern in Machine Tool Industry2.4.1 Types of Ownership2.4.2 Concentration of Machine Tool Industry2.5 Impact of Policy3. The future development trend3.1 The Domestic Products will Gradual Substitute Overseas Products3.2 Upgrading of Product Structure and high-technical Products3.3 Expansion of Export3.4 The Rising Price of Cast Iron and Increasing Cost4 key Companies4.1 Kunming Machine Tool4.1.1 Brief4.1.2 Performance4.1.3 The main Business-machine tool4.2 Zhejiang Tianma Bearing Co., Ltd / QIQIHAR HEAVY CNC EQUIPMENT CORPORATION LIMITEDFigure IndexThe Proportion of China’s NC Machine Tool of Metal-cutting Machine Tool 2000-2007The Output Value and Year-on-Year Growth of World Major Manufacturing Countries of Machine ToolsThe value of Output of World Major Manufacturing Countries of Machine tools 2002-2007The Market Share of World Major Manufacturing Countries of Machine Tools 2007The World Machine Tool Consumption of Major Countries 2002-2007The World Machine Tool Export of Major Countries 2002-2007The Output and Growth of China’s Metal-Cutting Machine Tool and NC Machine Tool 2000-2007The Output and Proportion of various products of China’s Metal-cutting Machine ToolThe Output and Proportion of various products of China’s NC Metal-cutting Machine ToolThe Output Value/per unit of China’s machine tool Metal-Cutting tool ProductsForeign Trade Deficit of China’s Machine Tool IndustryThe Amount of Export and Import and Growth rate of China’s Metal-working Machine Tool 1995-2007Foreign Trade Deficit of China’s Metal-working Machine Tool 1995-2007The Export Destinations and Growth of China’s Metal-working Machine Tool 2007The Share of Import Countries of China’s Metal-working Machine Tool 2007The Share of Export Countries of China’s Metal-working Machine Tool 2007The Amount of Exports and Growth of China’s Metal-Cutting Machine Tool Products Jan-Oct 2007The Amount of Imports and Growth of China’s Metal-Cutting Machine Tool Products Jan-Oct 2007The Ownership of Machine Tool IndustryThe Impact of tax policies on Machine Tool listed companiesComparison of Market Share Between Import and Domestic Metal-working Machine Tool 2001-2007The Amount of Foreign Trade Deficit and Growth of China’s Metal-cutting Machine Tool ProductsThe Output, Import and Growth of China’s Machining CentreThe Value of Output of Machining Centre and Proportion of Total Metal-Cutting Machine Tool of Major Countries 2006The Amount of China’s Metal-Cutting Machine Tool Exports and the proportion of Output Value and compared with the world average LevelThe Price Index of China’s scrap, cast iron, cokeThe Cost of Machine Tool IndustryThe Incomes and Growth of Net Profit of Kunming Machine Tool 2002-2007The Revenue of Kunming Machine Tool Main Business 2004-2007The Revenue of Machine Tool Business of Kunming Machine Tool 2003-2007Comparison of the Gross Profit Among Major Machine Tool CompaniesTable IndexThe Operation of Metal-Cutting Machine Tool IndustryThe Top 10 Output and Value of Output of Metal-Cutting Machine Tool Manufactories 2006The Top 10 Output and Value of Output of NC Metal-Cutting Machine Tool Manufactories 2006Bain Model of Industrial ConcentrationCosts Constitute of HT250 Hot MetalThe Impact of Rising Costs of Cast Iron on the Machine Tool industry’s Cost and Gross ProfitTo order this report:
China Machine Tool Industry Research 2008
http://www.reportlinker.com/p091023/China-Machine-Tool-Industry-Research-2008.html
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China, difficult for manufacturers to leave
October 10, 2008
It is being recently told that costs are rising in China, like all over the World. But it is hard to move your sourcing away China. An Article written by Venkatesan Vembu published in DNA India explains why :
“ For all the hand-wringing over the rising cost of sourcing from China, the country’s scale of manufacturing operations, the depth of its supply base and its famed infrastructural advantages make it a difficult country for manufacturers to leave for elsewhere, say economists, business consultants and businessmen.
“Where else but in China can you source the huge quantity of goods that Wal-Mart needs, for instance?” asks Jing Ulrich, chairman of China equities at JP Morgan Securities. Countries like Vietnam and Bangladesh may be able to take some marketshare from China in some industries, but they’re not going to be able to replicate the huge scale of manufacturing that China has built up over the past 30 years, she adds.
China still offers cost advantages in many verticals, points out Richard Brubaker, managing director of China Strategic Development Partners, a Shanghai-based business consultancy. “It’s hard for many manufacturers to leave China because there is no business case to move.”
China’s supply base is huge, and entire industries – such as automobiles and computers – have Tier 1-3 suppliers in place in China, observes Brubaker. “If a particular group decides to move out of China, for whatever reason, it loses out on the scale of support.”
Hong Kong-based garments manufacturer M Arunchalam, who sources from China for the world markets, agrees. Earlier this year, he moved a fifth of his supply lines from China to Vietnam and Bangladesh citing rising wage costs and tighter enforcement of pollution control laws. But even he acknowledges that it is hard for him to go to India, for instance, and replicate his China model, given the limitations of infrastructure there.
“If I want to make 2 million pairs of jeans and I have the fabric, I may go to Chennai, but I cannot wash it because there is no water,” says Arunchalam. “The entire processing industry is dying in India because of inadequate infrastructure.”
Ulrich notes that China remains a competitive producer of many goods, but that it feels the need to exit low-end manufacturing industries such as textiles, garments and shoes, which operate on thin margins. “In low-end manufacturing, which is labour-intensive and materials-intensive, China is not going to be as competitive as it once was.”
China, she adds, is looking to move up the value chain into machinery manufacturing, including high-end goods and telecommunication equipment. “This is where the bright spots will be.” And in these high-end industries, especially machinery equipment, China is beginning to command higher marketshare globally, she points out.
“If you take a look at China’s overall composition of exports, nearly 50% of it this year will be in the machinery sector. This is clearly where China’s overall competitiveness lies.”
Going forward, she says, she expects China to take on global players in their home markets. “Who knows, years from now, Chinese high-end machinery equipment may be sold in Germany, the US and Japan, not just in emerging markets.”
In that context, says Ulrich, moving elsewhere is not a solution for manufacturers.
In any case, Brubaker points out, many firms are not manufacturing in China solely for export. “Many of them are now manufacturing for the China market and are doing very well in that endeavour. For them to move to another country would not only add costs to bring those goods to the China market, it would also create higher barriers.”
And then, says Brubaker, there’s the comfort factor. “China is a known place: firms have already negotiated and closed their deals here. To start over in a country like India or Vietnam would be a long-drawn process where relationships would need to be established, deals negotiated, staff hired and capacity developed.”
Article by DNA India: Why China is so hard to leave
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China’s Zoomlion buys Italy’s construction machinery maker CIFA
October 8, 2008
Local construction machinery maker Changsha Zoomlion said yesterday it has completed its acquisition of Italy’s Compagnia Italiana Forme Acciaio SpA (CIFA), with Goldman Sachs and two other investors.
Changsha-based Zoomlion paid 163 million euros for a 60 percent stake in the Italian construction machinery maker from Italian private fund Magenta Fund and other CIFA shareholders in an all-cash transaction. Goldman, Mandarin Capital Partners and Chinese private equity firm Hony Capital will hold the remaining 40 percent.
The deal is expected to give Zoomlion a foothold in foreign markets and boost its overseas sales by “combining CIFA’s international brands, global sales and distribution network”, Zhan Chunxin, chairman and CEO of Zoomlion, said.
He said he expects the company to generate 40 percent of its sales outside China by 2010. Zoomlion recorded 1.02 billion yuan of exports in 2007, or roughly 11 percent of its overall sales.
CIFA, headquartered in Milan, has a 20 percent market share in Western Europe and ranks third in the global concrete machinery market.
Zoomlion is No 2 behind Sany Heavy Industry in the domestic concrete machinery sector and is expected to be in the top two in the global market after the acquisition.
“The deal will improve Zoomlion’s global sales and technology, which will make it the top Chinese concrete machinery maker by global sales. But Sany will still dominate the local market,” Xu Xingyue, an analyst at Beijing-based Changcheng Securities, said.
But some analysts warned of short-term risk, as concrete machinery is linked to the real estate industry and could be affected by current global economic woes.
The acquisition comes after Sany said it would invest in a new US plant.
China Daily
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Development Urged in Heilongjiang
September 8, 2008
Heilongjiang is part of northeast China (Manchuria), the traditional base of industry for the People’s Republic of China. Industry is focused upon coal, petroleum, lumber, machinery, and food. Due to its location, Heilongjiang is also an important gateway for trade with Russia.
Heilongjiang possesses the country’s largest forest zone, with a total area of 18.8 million hectares.
In contrast, it has rich coal reserves and electricity generation capacity in its power zone. The area includes the resource-rich cities Mudanjiang, Jiamusi, Jixi, Qitaihe, Shuangyashan and Hegang. The zone has 92% of the coal in the province.
Top Chinese political adviser, Jia Qinglin, on a visit there urged new social and economic development. This fits in with the government’s country’s strategy to revitalize the old industrial base.
Jia Qinglin, chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), made this known during an inspection tour of Heilongjiang. He visited local farms, enterprises and research institutes.
He said Heilongjiang, the country’s largest production base of commodity grain, should make further efforts on grain production, by increasing agricultural input and infrastructure construction.
In addition, the province should promote the development of agricultural science and technology, and further arouse farmers’ initiatives for farming.
Meanwhile, Heilongjiang, as one of China’s important industrial bases, should encourage its equipment manufacturing industry.
Jia Qinglin, who is also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, showed great concern regarding local ethnic minorities’ lives, saying the government should continue to help them lead harmonious and happy lives.
Source: English People’s Daily Online
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