The Sino-Korean Free Trade Agreement, signed by the state leaders of both nations, is supposed to bring huge policy bonus to enterprises concerned after the FTA comes to effect. Specialists in Engineering Machinery indicated that if truly that China and Korea can realize the cooperation in the field of High-end Technology, it would propel the Engineering Machinery Industry to survive from the “winter”.

In H1, the Engineering Machinery Industry suffered from great loss entirely. Statistics showed that 18 listed enterprises in Engineering Machinery Industry achieved total revenue of aprx. 50.01 Billion CNY, 29.31% declined from the 70.74 Billion CNY of same period in last year. Net profit of these enterprises was -0.59 Billion CNY, 114.89% declined comparing with the 3.96 Billion CNY net profit in H1, 2014. Since 2012, the earning power of these enterprises gradually decreased.

Intelligentization is believed to be the inevitable trend for Engineering Machinery Industry, due to the intense competition and diversified demands. “The R & D of key & core components requires more attention and investment. Components for High-end manufacturing in China usually depend on import. To reverse this situation, intelligentization is the only way out.” said an insider.