Xinhua News Agency, Las Vegas, March 9 (Financial Observer): "Made in China" Eyes "Trump's Trillion-Dollar Infrastructure Pie"

Xinhua reporters Gao Shan and Huang Heng

"Will Trump really spend a trillion dollars to build America?" This has been a hot topic since the opening of the Las Vegas construction machinery exhibition on the 7th.

Last month, US President Trump called on Congress to pass legislation to attract public and private investment and invest 1 trillion dollars in US infrastructure construction. Chinese companies participating in the Las Vegas construction machinery exhibition, whether domestic industry giants or small and medium-sized parts enterprises, are all considering the opportunities and challenges brought by this plan.

Zhang Xiuwen, chairman of Shantui Construction Machinery Co., Ltd., told reporters that the construction machinery industry is closely related to infrastructure. Trump has called for massive investment in infrastructure, "Chinese companies all hope to occupy a place, this is a good opportunity." Zhang Yujing, president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said that this brings favorable information to the construction machinery industry, and everyone will eye this opportunity and make preparations.

This is also the consensus of Chinese and foreign manufacturers and industry insiders interviewed by reporters. Some Chinese mechanical engineering companies that have been operating in the United States for many years have begun to actively layout, accelerate their pace, focus on opportunities, and seek to seize the initiative.

First, at the product level, many companies seek to continuously improve product categories and enhance product quality through technological innovation.

Compliance with US standards and quality certification is a key factor for products to enter the US market. Leading enterprises such as XCMG Group and Sany Heavy Industry, which have many years of experience in internationalization and have successfully completed acquisitions in Europe, have set up R&D centers in the United States. Sany Heavy Industry's R&D center in Georgia has more than 100 people. This exhibition brought cranes tailored for the US market. The improvement of technical level has enhanced the cost-effectiveness of Chinese products, which is also a sharp weapon for Chinese products to enter the US market.

Although brand awareness in the high-end market is much lower than that of international machinery giants such as Caterpillar, the overall relatively low prices and continuously improving quality of Chinese products have greatly enhanced their appeal to US users and begun to gradually achieve breakthroughs in some market segments.

He Qinghua, chairman of Sunward Intelligent Equipment Co., Ltd., said that through the pilot innovation model, a breakthrough in energy saving of excavators has been achieved, which can achieve at least 20% energy saving compared with similar international products.

Second, at the level of service network construction, Chinese companies are continuously increasing their efforts in building sales and service networks in the United States, and continuously expanding sales and service networks through cooperation with US agents or distributors.

Some US visitors interviewed by reporters said they are confident in the quality of Chinese products, but due to the vast territory of the United States, whether Chinese products can provide timely after-sales service and technical support is still a concern. Companies such as Zoomlion, XCMG Group, and Sunward Intelligent Equipment have all stated that they will make great efforts in this regard, take root in the US market, and win user trust.

Third, at the manufacturing level, leading Chinese companies are all considering whether to set up factories in the United States for production.

The focus of Trump's policy is to attract manufacturing back and realize "Made in America." Chinese companies are also taking precautions, one of which is to set up factories in the United States to achieve localized production.

Xiong Yanming, vice president of Zoomlion, said that entering the high-end markets of Europe and the United States cannot rely solely on trade. Sany Heavy Industry set up a factory in Georgia in 2011 and is now preparing to continue expanding production scale. XCMG Group is also preparing to first set up an assembly plant in Las Vegas, and later consider setting up a new factory for production after reaching a certain scale.

Xiong Yanming emphasized: "Understanding the US market is not achieved overnight. China's construction machinery exports have developed rapidly over the past 20 years, but the proportion of exports to Europe and the United States is very small. The United States has proposed a trillion-dollar infrastructure plan, but how many Chinese companies can enter the US market is still a question mark."