CRI听力:China's Machinery Industry Grows Slower

The China Machinery Industry Federation says the domestic engineering industry has witnessed slow growth in the first four months of this year.

Wang Ruixiang is the Chairman of the Federation.

"The growth rate of production and sales in the first four months were 12.1% and 11.45% respectively. Although the increase has achieved double-digit growth, but the growth rate was above 25% for the past 10 consecutive years. The economic returns for machinery companies have experienced a slowing down as well, with a growth rate of 6.7%, down from 20% in 2011."

China's machinery industry reached its climax of sales growth in the first quarter of 2011. But the growth rate for China's engineering enterprises is showing a downward trend.

Wang Ruixiang says that the slow growth is a result of fierce international competition.

"The U.S and other developed countries have put forward the strategy of reindustrialization and have adopted policies to support the high-end equipment manufacturing industry. The emerging economies, including many developing countries, also put a great deal of emphasis on the engineering industry, accepting outsourced industries from Western countries. They all grab their market share."

Wang Ruixiang says that the increasing production costs and decreasing market demand have also led to the slow growth.

Taking up nearly a fifth of China's industrial sector, the machinery industry is of great importance to the country's economy. Industry insiders believe that an industrial restructure is the way out.

Li Xiaofeng, Deputy General Manager of Shenyang Blower Works Group Corporation, says they have been accelerating steps to adjust and transform.

"We've made the decision to abandon the low-end products and intensify research and development of complex, high tech, large and environmental-friendly equipment."

The market has been playing an important role in restructuring the industry. But Wang Ruixiang, chairman of China Machinery Industry Federation, points out that the government should adopt supportive policies to fuel growth.

"The government should promote the localization of power plants, and homemade machinery should be included in the government's procurement list. We also hope that the government will support more research and development in the core technology of emerging companies."

Experts predict that, with supportive policies, the downturn in the machinery industry can be stopped before the second quarter, gaining momentum for the second half of this year.

For CRI, I'm Wang Xiao.