China: Good Aggregate Performance of Agricultural Machinery Industry
The foreign investments increase
As far as the investment, in 2015, the machinery industry is still a preferred industry to which the investors pay close attention.
The support strength of national finance for the fixed assets investment of the agricultural machinery enterprises increases obviously and the national budget fund investment of the current year increases by 115.27% on year-on-year basis; the foreign direct investment amount in agricultural machinery industry in 2015 increases by 93.56% while the investment of the whole machinery industry decreases by 16.68%.
Under the macro-environment with sluggish economic growth, the foreign-funded enterprise still has strong confidence in Chinese agricultural machinery industry and agricultural production. In 2015, the investment in China of such foreign-funded enterprises as AGCO in the United States and Japanese Kubota increases significantly.
The main business income of 10 sub-industries among 12 sub-industries of agricultural machinery industry maintains moderate and stable increase and the increase rate of only 2 sub-industries decreases. The main business income of agricultural and sideline food processing equipment increases by 13.57%; the main business income of components and parts increases by 7.26% and 5.63% for the tractor. Affected by the stagnant condition of domestic dairy industry, the growth speed of the feed machinery and stockbreeding machine with high-speed increase in the last few years slows down and the main business income increase by 5.63% and 4.18% respectively. The total production of feed machinery decreases by 12.34%.