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Overview the China construction equipment market.
QUESTION:How is the opportunity of US companies in the china construction equipment market?
ANSWER: Overview
x 2004 2005 2006 (Estimated)
Total Market Size 10.6 Billion USD 16 Billion USD 17.9 Billion USD
Total Local Production 4.3 Billion USD 13 Billion USD 13.9 Billion USD
Total Exports 99 Million USD 2.9 Billion USD 4.5 Billion USD
Total Imports 6.4 Billion USD 3.0 Billion USD 4.0 Billion USD
Imports from the U.S. 25 Million USD 369 Million USD 405 Million USD
(Source: China Customs statistics for construction equipment.)
The Chinese construction equipment market presents many opportunities and challenges to American companies seeking to increase their sales in China. In 2006, the total exports exceeded the total imports for the first time. Many American companies (e.g. Caterpillar, John Deere, and Terex) have successfully entered the Chinese market but are increasingly producing locally. They have become the key players in Chinas construction equipment industry. Second, the Chinese government is supporting local companies in the international market. Recently, some of U.S. companies trying to acquire shares in state-owned companies have encountered delays in obtaining the approval from the Ministry of Commerce. Meanwhile, U.S. companies are facing fierce competition from Korean, Japanese, German, and domestic manufacturers.
The best opportunities for U.S. exports of construction equipment include the following: concrete machines, excavators, shovel loaders, lifts, self-propelled bulldozers, angle dozers, graders, levelers, scrapers, mechanical shovels, tramping machines, and road rollers.
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