The machinery industry in China experienced a notable surge in the first half of this year, according to a report from the China Machinery Industry Federation on Wednesday.
The industry's value added recorded a remarkable 6.1 percent year-on-year growth, surpassing the national industrial growth rate by 0.1 percentage points. All five major sectors within the machinery industry witnessed positive growth during this period.
Since the beginning of the second quarter, China's machinery industry has been exhibiting a favorable operational trend, marked by increased production efficiency. This growth can be attributed to the industry's concerted efforts in embracing digitization, driving intelligent transformations, and promoting the modernization of traditional sectors. Additionally, the industry has focused on cultivating and developing new quality productive forces to further enhance its overall performance.
Simultaneously, the successful implementation of large-scale equipment upgrades and a program encouraging the replacement of old consumer goods have played a vital role in stimulating market demand and spurring the machinery industry's growth. As a result, the production speed of the industry has significantly accelerated. Notably, 122 major machinery products saw their cumulative production growth in the first half of the year reaching an impressive 61.5 percent, surpassing the corresponding period last year.
In breakdown, the domestic production and sales of new energy vehicles had already surpassed 30 million units by the end of June, indicating a promising trajectory for this emerging market segment. The electrical equipment sector has demonstrated sustained high-level production, while the engineering machinery sector has witnessed stabilization after a period of decline. Additionally, the recovery of consumer and tourism markets has fueled the growth of products such as cameras and specialized packaging equipment.
China's machinery industry witnesses robust growth in H1
China's machinery industry witnesses robust growth in H1
The latest U.S. tariffs on imported vehicles are expected to increase uncertainty in global supply chains and could significantly impact automakers around the world, including those in Germany, German experts said recently.
U.S. President Donald Trump signed an executive order on Wednesday to impose 25 percent tariffs on all imported vehicles, starting from Thursday, while tariffs on auto parts will be fully implemented by May 3.
As one of the world's leading automobile manufacturers, Germany's automotive industry relies heavily on international markets, with the United States serving as a key export destination.
Industry insiders warn that the recent move by the U.S. is likely to increase uncertainty in global market and could have a significant impact on automakers worldwide, including those in Germany.
In a statement released on Thursday, Hildegard Mueller, president of the German Association of the Automotive Industry, criticized the U.S. imposition of 25 percent additional tariffs on the automotive industry, calling it a serious blow to global supply chains that could create uncertainty for German car companies and their investments in the U.S.
Trump's policy is not "America First," but "America Isolated," and this protectionist approach will only lead to more losers, ultimately impacting American consumers, businesses, and the global economy, said Müller.
Omer Sahin Ganiyusufoglu, a member of German National Academy of Science and Engineering, said that the tariffs will increase the cost of manufacturing vehicles. Consequently, American consumers will face higher car prices, making it difficult for anyone to win.
"Tariff policies can be implemented swiftly, but it's important to carefully assess their effects. When tariffs are imposed on imported goods, the burden usually falls on consumers or businesses. These tariffs don't genuinely benefit the domestic population, and people will eventually recognize this," said Ganiyusufoglu.
"The U.S. will come to realize that in trying to throw a stone at others, it has ended up hurting itself and damaging its own citizens," he added.
Industry insiders note that the global automotive industry is at a crucial turning point in electrification and digital transformation, with technological innovation and supply chain restructuring as key development focuses. However, the recent U.S. tariff policy creates market uncertainty, prompting companies to reevaluate their global strategies.
US tariff move sparks criticism, concern in Germany
