CAEXPO Helps Chinese Machinery Shine in Overseas Markets

Zhong Shuangxia Xie Zongming

ASEAN countries infrastructure and energy industry construction and production are enhancing, which implies an increase in their demand for heavy construction equipment. Therefore, in recent years, well-made and cost-effective made-in-China construction machinery and equipment have become one of the preferred choices in the ASEAN market.

As a window for the construction machinery companies of China, ASEAN, and countries along the Belt and Road to communicate and cooperate, the China-ASEAN Expo (CAEXPO) plays an irreplaceable role for made-in-China equipment to enter the ASEAN construction machinery market and in improving China-ASEAN connectivity.

CAEXPO opens up the ASEAN market with calls for cooperation

The Jakarta-Bandung High-speed Railway, stretching 142 kilometers, is the first high-speed railway in Indonesia and Southeast Asia. Since 2018 when the project entered the construction phase, various heavy construction machinery made by Guangxi LiuGong Machinery Co., Ltd. (Liugong) have been shipped to the construction site group by group, successfully solving the significant difficulties of tunnel excavation, boring, and drilling.

Liugong is merely one of the examples of Chinese construction machinery manufacturers going global to provide equipment and support for ASEAN clients.

Currently, Chinas manufacturing industry not only has a considerable market share in the world but also comes in various niche kinds. Cooperation with China will be optimal for ASEAN countries that want to improve infrastructure by introducing heavy machinery and intelligent solutions. Statistics also show that ASEAN has become the largest export destination of Chinese construction machinery.

In 2022, Chinas construction equipment trade was valued at 47.033 billion US dollars, with a 24.6% year-on-year increase. The export in this sector accounts for 44.302 billion US dollars, marking a 30.2% annual growth and making a new record on top of the one made in 2021. From the perspective of main export markets, ASEAN, Africa, and Latin America account for over 18% of the share. Countries and regions like the ASEAN have also started to favor Chinese construction equipment for mechanized construction as it gradually becomes popular in the global market.

Guangxi, as Chinas international gateway to the ASEAN, also encourages the local companies in the construction machinery and motor industries to explore the Southeast Asia market with the platform of CAEXPO.

“China-ASEAN Expo opens the ASEAN market for us. With this annual event, we can obtain timely business information and opportunities while promoting our company and products to the overseas markets,” said Luo Yi, Assistant to Chairman of Guangxi Mesda Group (Mesda), a regular participant of CAEXPOs Construction Machinery and Transport Vehicles Exhibition.

The Construction Machinery and Transport Vehicles Exhibition has long been an area of focus of the CAEXPO, displaying related Chinese products in this industry that suit the ASEAN markets demand. In the recent ten years, from 2012 to 2021, Guangxis automobile and construction machinery manufacturers have been optimizing their industry chain and supply chain in ASEAN countries through channels like the CAEXPO. The proportion of mechanical and electrical products in Guangxis import & export with ASEAN has increased from 7.3% and 28.9% in 2012 to 44.2% and 45% in 2021, respectively.

Services made by needs

In each years CAEXPO, the “armored beasts” displayed at the Chinese Hibiscus Hall are the most eye-catching exhibits. All kinds of the latest practical machinery like excavating equipment, processing equipment, and transport vehicles will gather here every year. With CAEXPO, the bridge for cooperation, Chinese manufacturers can comprehensively demonstrate the charm of intelligent manufacturing to the audience of government officials, international traders, and normal visitors, attracting more orders from engineering contractors.

At the 19th CAEXPO, Guangxi Yuchai Machinery Group Co., Ltd. (Yuchai) brought its whole-industry-chain products to the exhibition, including the industry-leading 120kW fuel cell and the zero-carbon-emission bus equipped with the cell, the powertrain of Chinas first tractor with E-CVT technology, the long-ranged Yuchai electric van, and so on.

“Many other exhibitors and potential clients have come to us, showing great interest in our new products,” said Chen Ruiguang, an exhibitor representing Yuchai, looking delighted to see products made in Yulin shine at the CAEXPO.

With CAEXPOs platform and Guangxis geographical advantage, Yuchai, who has been participating in CAEXPO since 2004, has gained outstanding results in the Southeast Asian market after CAEXPOs promotion and years of marketing. Currently, ASEANs ownership of Yuchais products has reached 260,000 units.

“With CAEXPO, we can enter the ASEAN market or even the world market,” said Chen Fei, overseas supporting developer of Yuchai, when asked about the prospect of the company.

Mesda, a high-end equipment manufacturing enterprise engaged in the R&D, manufacture, and marketing of engineering machinery, has participated in the CAEXPO with its flagship products for ten consecutive years. According to the Chairman of the company Huang Kanghua, the companys equipment has entered the ASEAN market like Indonesia, Thailand, Cambodia, and Laos and contributed to the fields such as construction waste recycling, mining, and tailings treatment through CAEXPO.

At the 19th CAEXPO, Mesda also made a stunning debut with its new wheeled excavator ME15W and the newly launched three-section arm-wheeled excavator ME1M.

Besides the active participation in the CAEXPO, Mesda also made customized products for its ASEAN clients. Huang Kanghua said that having learned that ASEAN countries have a small demand for large equipment, Mesda customized small mobile crushing and screening equipment that can be loaded into containers for ASEAN countries such as Vietnam.

Engineering machinery companies like Mesda that tailor products suitable for ASEAN countries are not in small numbers. For example, CAEXPOs star exhibitor Xiamen XGMA Machinery Co., Ltd., will optimize products performances following the local environment to avoid malfunction.

“Engineering machines made by China are of good quality, high technological level, and moderate price, which highly fits in with the condition of Vietnam and the actual needs of the enterprises. Therefore, they feature high ownership in Vietnam,” said Nguyen Van Sua, President of the Association of Vietnam Engineering Machinery Enterprises.

For a long time, many Chinese manufacturing enterprises have actively expanded international business cooperation through the CAEXPO. They brought affordable quality featured products and more intelligent devices, which purchasers deeply love from ASEAN and other countries.

With limitless innovation, CAEXPO ushers in more cooperation opportunities

In fact, from exhibit varieties to exhibition scale and modes, the engineering machinery and transport vehicles exhibition of the CAEXPO is more innovative and attractive each year, giving a better experience to domestic and overseas visitors and business people while expanding new cooperation opportunities.

The engineering machinery and transport vehicles exhibition of the 16th CAEXPO in 2019 covered an area of 7,066 square meters, a record high over the past three years. At that time, well-known enterprises like XCMG Machinery, Dongfeng Liuzhou Motor, Qingling Motor, and Liuzhou Wuling Automobile were among its participation lists. By the 18th CAEXPO, the exhibition has expanded to 10,000 square meters. Loading machinery, construction machinery, road construction machinery, mining machinery, port logistics machinery, new energy vehicles and accessories, engineering vehicles, and other products were all available. More well-known enterprises followed to make their appearances.

CAEXPO also held targeted trade matchmaking events to innovate exhibition modes, such as special engineering machinery procurement meetings to provide “face-to-face” accurate matchmaking platforms and opportunities for Chinese and ASEAN enterprises. At the site of the event, many manufacturers, trading companies, and distributors at home and abroad communicated actively and harmoniously, all with remarkable gains.

During the 16th CAEXPO, Guangxi Shenta Machinery Equipment Co., Ltd. reached agreements on brick-making production lines with many ASEAN enterprises. Military-Civilian Integration (Suzhou) Technology Co., Ltd., the only enterprise to display military products at the CAEXPO, arrested the attention of many ASEAN countries with its military trucks and signed contracts with Cambodia, Myanmar, and other countries on site.

To cope with the pandemic, the Online CAEXPO of the 18th session simultaneously displayed engineering machinery and transport vehicles in the physical exhibition, providing enterprises with online display, conference, negotiation, and promotion services. Relevant trade matchmaking events also made a presence online. Through these platforms featuring targeted matchmaking and real-time interaction built by the Online CAEXPO, visitors and business people would experience a more dimensional CAEXPO.

“CAEXPO plays a positive role in Wulings brand promotion and its further expansion of the ASEAN market,” said the head of Liuzhou Wuling Automobile. This well-known Chinese engineering machinery enterprise has repeatedly appeared at the CAEXPO, bringing with its high-end equipment.

In September 2023, a grand event of the engineering machinery industry between China and ASEAN countries will be held again at the CAEXPO. At that time, a batch of new technologies and products indicating industry trends will compete in the same arena, bringing more high-quality solutions to ASEAN and other countries.