This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 6/17/2016

Agriculture Machinery

Overview  

China is the largest international market for U.S. food and agricultural products, accounting for 20 percent of all U.S. farm exports. Over the last two decades, China’s economic prosperity and increased consumer demand for food has significantly contributed to the record growth in United States agricultural exports. From fiscal year (FY) 2000 to FY 2015, the value of U.S. agricultural and related exports to China rose from $1.7 to $25.9 billion dollars. 

The Government of China strongly supports the development of agricultural machinery sector; the comprehensive strength of the agricultural machinery sector has grown rapidly in recent years, the trading statistics, profit margin, sales revenue and agricultural machinery industrial GDP have grown over 20 percent in recent years. China is the world leader for production of tractors, combined harvester, plant protection machinery and agricultural pumps. The import and export data for the Ag-machinery sector in China in 2015 was $12.44 billion U.S., a y-o-y decrease of 4.63 percent, and the trade surplus is $7.89 billion U.S., a y-o-y decrease of 2.35 percent. 

China’s agricultural machinery modernization rate is 62 percent in 2015. Several Chinese governments’ policies have emphasized the importance of agricultural machinery development, for instance, the Chinese government’s “Thirteen Five Year Plan”, emphasizes the importance of agricultural modernization. However, China remains domestically imbalanced in their agricultural machinery modernization efforts; only nine provinces’ agricultural machinery modernization rate is over 70 percent, four are less than 40 percent. 
 

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United States (HS 8) Export Statistics To China
Commodity: 8701, Tractors (Other Than Works Trucks Of Heading 8709)
Year To Date: January – March 2016

Commodity DescriptionUnited States Dollars% Share% Change
2014201520162014201520162016/2015
8701Tractors (Other Than Works Trucks Of Heading 8709)15,249,31716,332,89813,310,243100100100-18.51
870190Tractors, Nesoi13,673,18215,634,1619,347,00289.6695.7270.22-40.21
870130Track-Laying Tractors1,416,135698,7373,746,2419.294.2828.15436.14
870120Road Tractors For Semi-Trailers160,0000217,0001.0501.63n/a
Source: Global Trade Atlas

United States (HS 8) Total Trade With China
Commodity: 8433, Harvesting Or Threshing Machines; Grass Or Hay Mowers; Machines For Cleaning, Sorting Or Grading Eggs, Fruit Or Other Produce, Nesoi; Parts Thereof
Year To Date: January – March 2016

CommodityDescriptionUnited States Dollars% Share% Change
2014201520162014201520162016/2015
8433Harvest Etc Machines, Cleaning Eggs Etc Nesoi, Pts119,541,726154,726,942148,257,174100100100-4.18
843390Parts For Harvester, Grass Mowers, Sorting Egg Etc72,784,05297,862,20880,139,47960.8963.2554.05-18.11
843311Mowers For Lawns, Parks Etc Cut Device Horiz Plane32,831,91534,496,86352,430,96427.4622.335.3651.99
843319Mowers For Lawns Exc Pwrd W Horzntl Rotating Cuttr7,851,1585,414,8847,247,4596.573.54.8933.84
843340Straw Or Fodder Balers, Including Pick-Up Balers1,245,0445,089,1054,176,3831.043.292.82-17.93
843320Mowers, Nesoi, Inc Cutter Bar For Tractor Mounting3,171,1022,214,8331,827,6642.651.431.23-17.48
843360Mach For Clean/Sort/Grading Eggs/Fruit/Agr Produce104,8241,992,8621,095,9050.091.290.74-45.01
843351Combine Harvester-Threshers628,8603,440,609680,8000.532.220.46-80.21
843330Haying Machines Other Than Mowers753,1251,286,320598,2770.630.830.4-53.49
843353Root Or Tuber Harvesting Machines10,678035,5430.0100.02n/a
843352Threshing Mach, Exc Combine Harvester-Threshers0024,700000.02n/a
843359Harvesting Machinery, Nesoi160,9682,929,25800.131.890-100
 Source: Global Trade Atlas

United States (HS 8) Total Trade With China
Commodity: 8432, Agricultural, Horticultural Or Forestry Machinery For Soil Preparation Or Cultivation; Lawn Or Sports Ground Rollers; Parts Thereof
Year To Date: January – March 2016

CommodityDescriptionUnited States Dollars% Share% Change
2014201520162014201520162016/2015
8432Agricult Etc Mach For Soil Etc; Lawn Rollers; Pts56,159,55657,189,84444,088,398100100100-22.91
843229Harrows Ex Disc, Scarifiers Cultivators Hoes Etc20,849,40729,773,23420,435,75137.1352.0646.35-31.36
843290Agric Hort/Forest Machy & Lawn/Ground Roller Parts29,296,29022,238,93718,487,76252.1738.8941.93-16.87
843280Agril,Hort,Forsty Mach For Soil Prep Or Cultivate2,661,932853,6312,220,5824.741.495.04160.13
843240Manure Spreaders And Fertilizer Distributors1,875,6382,748,6452,006,6373.344.814.55-27
843230Seeders, Planters And Transplanters1,262,8211,301,973583,6542.252.281.32-55.17
843221Disc Harrows86,929165,549347,6050.150.290.79109.97
843210Plows For Soil Preparation Or Cultivation126,539107,8756,4070.230.190.01-94

Source: Global Trade Atlas

United States (HS 8) Total Trade With China
Commodity: 8434, Milking Machines And Dairy Machinery, And Parts Thereof
Year To Date: January – March 2016

CommodityDescriptionUnited States Dollars% Share% Change
2014201520162014201520162016/2015
8434Milking Machines & Dairy Machinery & Parts3,601,9427,442,5982,720,122100100100-63.45
843490Parts Of Milking Machines And Dairy Machinery3,436,6696,186,1652,530,29095.4183.1293.02-59.1
843420Dairy Machinery147,9411,256,433186,9444.1116.886.87-85.12
843410Milking Machines17,33202,8880.4800.11n/a 

Source: Global Trade Atlas

Opportunities   

Precision agriculture and unmanned agricultural machinery are growth sectors in China’s agricultural machinery industry as China is looking to reform of its agriculture industry. 
Poultry and swine related equipment and technology will have market potential given China’s increasing demands for these products.  
Moreover, China’s agricultural insurance has grown rapidly in recent years; 59 percent of the farmlands have been insured, the annual growth rate of agricultural insurance was around 21.2 percent from 2010-2015.  

Barriers 

China’s Made in China 2025 Strategy is targeting a 90 percent domestic market share of agricultural machinery by 2020, which high-end machinery like 200 horsepower and above large tractors and cotton collection machine’s market share should be at least 30 percent. Domestic made agricultural machinery market share should be over 95 percent by 2025, which high-end machinery like 200 horsepower and above large tractors and cotton collection machinery’s market share should be at least 60 percent. This creates difficult for foreign agricultural machinery to enter China’s market. 

The Chinese government is also providing subsidies for domestic made agricultural machinery qualified for government subsidies. The subsidies are no more than 30 percent of the product’s sale price, depending on the type of the products. Unfortunately, subsidies are only given to agricultural machinery manufactured in China and at times only given to Chinese branded machines. 
Inadequacies in China’s protection and enforcement of intellectual property rights (IPR) continue to present serious barriers to U.S. exports. China was again placed on the Priority Watch List in the 2015 Special 301 report, and several online and physical markets were named in USTR’s 2013 Out-of-Cycle Review of Notorious Markets, which identifies Internet and physical markets that exemplify key challenges in the global struggle against piracy and counterfeiting. 
The protection and enforcement of trade secrets in China is also a serious problem. Theft of trade secrets that benefit Chinese companies occur both within China and beyond its borders. The Chinese Government frequently has failed to recognize serious infringements of IPR that violate Chinese law. Entities affiliated with the Chinese Government and the Chinese military have infiltrated the computer systems of U.S. companies, stealing huge amounts of data, including intellectual property.

For more details on China’s IPR environment, please refer to the materials located in the "China IPR Toolkit" located at: http://beijing.usembassy-china.org.cn/ipr.html
 

2016 Trade Shows and Events:

1VIV China 2016
September 6-8, 2016
Beijing 

2AgriEquip
June 9-11, 2016
Shanghai New International Exhibition Center

Contacts

U.S. Embassy in Beijing 
Jessica Tan, Commercial Specialist 
(86-10) 8531-4804
Feng.tan@trade.gov 

U.S. Consulate in Shenyang
Yang Liu, Senior Commercial Specialist
(86- 24) 2322-1198
Yang.liu@trade.gov

U.S. Consulate in Chengdu
Haiyan Hua, Commercial Representative 
(86- 28) 8598-6738
haiyan.hua@trade.gov

U.S. Consulate in Shanghai
Ken Shen, Commercial Specialist
(86- 21) 6279-8789
Ken.Shen@trade.gov

U.S. Consulate in Guangzhou
Jenesy Wang, Commercial Specialist
(86- 20) 3814-5405
jenesy.wang@trade.gov

Web Resources

Ministry of Agriculture, China
www.moa.gov.cn 

Ministry of Water Resource, China
www.mwr.gov.cn 

Chinese Academy of Agricultural Mechanization Sciences
www.caams.org.cn 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



China Agribusiness Trade Development and Promotion