Warming up the development of some machinery and equipment in China should slow down

The current "steady recovery" has become the main feature of China's machinery industry economic trends. In the first half of the year, the total output value of the machinery industry increased by 7.28% year-on-year. In the month of June, the total output value of the machinery industry exceeded 1 trillion yuan, setting a record high, indicating that the machinery industry production situation is accelerating.
In the first half of the year, mechanical products benefited most from the country’s policy of expanding domestic demand, and the most obvious effect was in the agricultural machinery and automotive industries. Taking agricultural machinery as an example, in recent years, the country has continuously increased its efforts to support “agriculture, rural areas and farmers”. Last year, the state allocated 4 billion yuan in financial subsidies for farmers to purchase agricultural machinery. This year, it further increased subsidies to 13 billion yuan, which greatly stimulated the purchase of agricultural machinery. . In the first half of the year, the output of large-scale tractors needed for agricultural production increased by 32% year-on-year, that of medium-sized tractors increased by 28%, and that of combine harvesters by 43%, resulting in many models of tractors and other agricultural machines in short supply.
In terms of production of major equipment products, the localization of power equipment, metallurgy and mining equipment in the first half of the year has been promoted to a large extent, and the production has developed rapidly. The output of wind power equipment has reached 4.27 million kilowatts, an increase of 135.7% year-on-year. However, the output of machine tools, instrumentation, and environmental pollution prevention and control equipment fell almost entirely, and the output of hydraulics, pneumatic components, and fasteners and other basic parts also showed a tendency to decline.
Although the production of some machinery and equipment products slowed, the investment in fixed assets across the industry grew at a rapid rate in the first half of the year, causing the problem of overcapacity to develop from low-end products to high-end products. The risk of disorderly market competition and vicious price wars is accumulating. Therefore, the current issue of high-level redundant construction should be particularly vigilant.

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