Equipment makers rebound from global skid
Production by China's mechanical power manufacturing industry is expected to grow more than 20 percent this year, contributing substantially to the recovery of the global industry, said Sha Baosen, general chairman of China Hydraulics Pneumatics and Seals Association (CHPSA).
After the far-reaching impacts of the global economic crisis that began in 2008, the achievement is commendable, he said. The sector ranges from manufacture of gears, bearings and motors to hydraulics, actuators, controls and sensors.
While the global market for hydraulics shrank by 33 percent and pneumatics fell 40 percent in 2009, China maintained 6 percent growth for the year.
Sha said the growth resulted from polices to spur domestic consumption and modernize industries as well as a 4 trillion yuan government stimulus package.
In response to the central government's revitalization plan for the machine and equipment industry in early 2009, the sector increased proprietary innovation and industrial restructuring to improve efficiency and reduce costs, Sha noted.
Statistics from the first nine months of this year indicate industry revenues will increase 25 percent for the entire year, he estimated.
Despite the strong performance and optimistic outlook, Sha said many adversities loom in post-crisis period.
There is still a risk of another downturn as some worldwide economic turmoil continues, which in turn could dampen China's economy, he said.
The pressure for appreciation of the yuan and trade protectionism are also contributing to potential risk.
As well, the manufacturing industry has yet to shift to a more resource-efficient and environmentally sound development pattern, he added.
"In the face of the challenges, we should never relent," he said.
The CHPSA has cooperated with its partners including Deutsche Messe AG to organize the PTC ASIA for nearly 20 years.
The exhibition provides an annual forum for technology and information exchange, Sha said.
"As one of the event's co-organizers, we regard improved services as our commitment and obligation for promoting the progress of the global power transmission industry," he said.