• China Moulding and Machinery Industry represent a powerful and strategic market at international level. With a fast growth last years, “China has telescoped into one generation what other countries took centuries to achieve. This nation’s unique attempt to complete two transitions at once –from command to market economy and from rural to an urban society –is without historical precedent. Nowhere else such mammoth transformation is recorded so far” (World Bank 2007)

According to statistics provided by the China Plastics Processing Industry Association, the number of Chinese manufacturers of plastic injection moulding is currently above 10,000, with 300,000 employees and annual revenue of 10 billion RMB (US$1.2 billion). This confirms the fact of China having a well-developed domestic industry of plastic manufacturing. Their products cover almost completely the huge requirements of the local market, leaving just a 5% of market share for importations (Strategis Canada 2007).

In an analogue way, the machinery industry has also followed the path of the “Chinese Economic Miracle”. Free trade zones, Special Economic zones, excellent infrastructure facility in express toll roads, airports, container ports in Yangtze river delta, Pearl river delta and Bohai gulf areas have transformed the face of the Chinese industry for successful global commerce. The local foundry industry has played a significant role thanks to this structural support, as well as to the increasing internal and foreign capital investments of leading foundry groups from the early 90s (Padki 2007).

China moulding machinery exports maintained higher than 20% average annual growth rate from 2002. From the 20 billion euros global annual sales of this type of machinery, China accounts for 10%, being the destination of this machinery to regions such as Hong Kong, Japan, USA, Taiwan, Russia, Singapore, Germany, Italy and South Korea (Plastic 2007).

Chinese moulding industry, as backbone of the Chinese manufacturing base, it has become a global supply chain center for industrial, commercial and consumer goods and utilities. Almost all multinational corporation of Fortune 500 and various emerging economies continue to include China as the key market and growth center for their own products, services and GDP growth (Padki 2007).

China therefore continues to leverage its market power whilst striking commercial agreements in favor of the Chinese economy for technology, capital, some cases even IP, talent resources and the related engineering and management training in western countries (Padki 2007).

Regarding currency exchange, the Rmb is estimated to be approximately 40% undervalued against US$ that is unfortunately the major trading currency in global markets, moreover the American currency has depreciated against other major international currencies in the past five years making Chinese exports very attractive. (Padki 2007)

References:
- World Bank, 2007. “China 2020 review”

- Strategis, 2007. “China Plastic Injection Molding Industry”, Strategis website [http://strategis.ic.gc.ca/epic/site/imr-ri.nsf/en/gr115591e.html]
[accessed 24/07/2007].

- Plastics Mag, 2007. Plastics website. “Breakthrough in China injection moulding machinery”
[http://plastics.2456.com/eng/epub/details.asp?epubid=3&id=1693]
[accessed 24/07/2007].

- Padki, G. 2007. Foundry Planet website. “The foundry industry trends in China”
[http://www.foundry-planet.com/fileadmin/redakteur/pdfdateien/technical-reports/
China_Foundry_Evolution_Turkey_CongressNov2006.pdf]
[accessed 24/07/2007].