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China Electrical Machinery Industry Report, 2007-2008

Published: Jul/2008

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China's electrical machinery industry has expanded rapidly in recent years. In 2007, the total output value of China's electrical machinery industry reached CNY235.94 billion, up 37% year on year. The accumulated assets of the whole industry in the first eleven months of 2007 was CNY178.57 billion, and those in the full year of 2007 exceeded CNY180 billion, up 25% year on year. By the end of 2006, China's number of electrical machinery producers had reached 1,786, and by the end of 2007, the figure has stood at 2,141. The rapid expansion of production scale was mainly stimulated by rise in market demand. However, the enlarged production scale has made the market competition in the industry more serious, leading to a rise in the number of loss-making companies.

Total Assets of China Electrical Machinery Industry and Its Growth Rate 2000-2007

 
Source: National Bureau of Statistics of China

Meanwhile, regional output of electrical machinery has a tendency towards concentration in the provinces of Jiangsu, Shandong and Zhejiang. In 2007, the AC machine output in East China occupied 59.03% of China's total output, representing 4.22 percentage points higher than the previous year. In addition, the export value of China electrical machinery industry has rapidly grown, of which, the export of medium- and small-sized electrical machinery has increased sharply for years consecutively, making medium- and small-sized electrical machinery become one of the five major export products in the electrical machinery industry.

This report makes in-depth research on the status quo of China electrical machinery industry, forecasts the future development trends of the industry, and discusses investment opportunities and risks in the industry.



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