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In 2014, structural differentiation will emerge in the development of various sub-sectors within the machinery industry.

Release time:

2017-06-05 02:04

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In 2014, as China’s economy undergoes structural adjustments, downstream investment will show significant divergence. Investment in sectors such as real estate and industries suffering from overcapacity will be restrained. Meanwhile, investment in areas including national defense, high-end equipment manufacturing, projects benefiting people’s livelihoods, environmental protection, and energy will continue to grow. The shift in downstream demand driven by this investment transformation will lead to structural differentiation in the development of various sub-sectors within the machinery industry. Industry insiders indicate that, under the prospect of structural differentiation in industry development in 2014, they are optimistic about emerging growth areas such as oil and gas equipment, the general aviation industrial chain, and industrial automation equipment. Additionally, traditional industries will benefit from policy changes and...

　　In 2014, as China’s economy undergoes structural adjustments, downstream investment will show significant divergence. Investment in sectors such as real estate and industries suffering from overcapacity will be restrained. Meanwhile, investment in areas including national defense, high-end equipment manufacturing, projects benefiting people’s livelihoods, environmental protection, and energy will continue to grow. The shift in downstream demand driven by this investment transformation will lead to structural differentiation in the development of various sub-sectors within the machinery industry.
　　Industry insiders say that in 2014, amid a prospect of structural differentiation in industry development, they are optimistic about emerging growth sectors such as oil and gas equipment, the general aviation industrial chain, and industrial automation equipment. They are also bullish on niche segments within traditional industries that stand to benefit from policy changes and technological upgrades, including railway and urban rail transit equipment, highway maintenance equipment, and water pumps.
　　According to analysis, among key industries, construction machinery: Downstream demand is influenced by investment in the real estate and traditional infrastructure sectors, leading to a weak industry recovery characterized by structural divergence. Demand for earthmoving machinery is expected to bottom out and then begin to rebound. General aviation: A policy breakthrough has set off a wave of change—new regulations for general aviation mark the beginning of a historic growth opportunity for the industry. Compared with the nearly one trillion-dollar-scale general aviation industries in Europe and the U.S., China’s general aviation sector is still in its early stages, and it is poised for robust growth over the next 20 to 30 years. Railway equipment: The 14-year railway reform has entered its second phase. A series of measures aimed at breaking monopolies and enhancing industry competition—including separating network operations from transportation, introducing private capital, and reforming the investment and financing system—are set to be rolled out one after another. Benefiting from these reforms, as high-speed railways and urban rail transit projects under construction reach completion and begin operating en masse by the end of the 12th Five-Year Plan period, the railway equipment industry will once again enter a fast-track development path.

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