bauma China Press Conference Speech

Zhang Xiaolin, Vice President, CCPIT Machinery Sub-council

Ladies and gentlemen, exhibitors, friends from the press,

Good morning/afternoon!

It’s an honor to speak here on behalf of the Chinese organizer of bauma China. Mrs. Hamma/Mr. Mao has already introduced the history of bauma China and its impressing figures in 2008 just now. The first three bauma China shows has shown very strong progress and this year is no different. bauma China is now not only the biggest construction machinery trade show in Asia, but a leading exhibition internationally. And it is still on the increase. The success of bauma China is a result of close Sino-German cooperation and is showing the rapid economic progress and integration in the Asian-Pacific region.

China’s economy has been experiencing over 10% increase in 5 consecutive years. Though slowed down this year by the financial crisis in US, high oil price, low export and sluggish real estate market, Chinese economy still enjoys many favorite conditions: better macro-economic controlling ability, strong material stock, rapid fiscal revenue growth, smooth economic operation, ample foreign exchange reserve and continuous increase in grain yield all contribute to its growth. The Fall Report: Economic Status released by the Chinese Social Science Academy on Oct. 10 estimates the GDP growth around 10.1% this year. If the world economic environment does not deteriorate and no major natural disaster happens in 2009, the GDP is expected to retain around 9.5%, dropping a little. At present, China is promoting a transfer from the investment and export-inclined economy to an increase mood targeting at domestic demand and import/export balance. A series of policies are introduced lately, including interest and tax cuts, to boost economy and domestic demand, ensuring a healthy and steady growth.

As for the construction machinery market, though investment in real estate has slide a bit, those in mining and infrastructure are on the rise. The export has been very pretty in the first 8 months accumulating to 9 billion USD, a 69% increase to last year (4 billion import, increases 21%), and is a major factor for the overall growth of the industry. In the first half of 2008, construction machinery sales exceeded 210 billion RMB, meaning over 30% increases in two consecutive years. The estimated whole year increase is around 20%. The import and export in construction machinery has quickly rocketed from 2.79 billion USD in 2002 to 13.64 billion in 2007, nearly 4 times increase in the 5 years span (for export the increase amounts to over 10 times). In 2008 the figure is expected to reach 20 billion USD.

To serve the developments in the industry and the market, bauma China will come up with new products and services using better technology and more energy-efficient measures. A series of accompanying conferences and promotion activities will be held concurrently with the trade show. bauma China will present you the best platform for both exhibitors and visitors. It will keep manufacturing companies updated on foreign counterpart products and services. With over 1,500 exhibitors, bauma China is the best place for you to choose the right products. bauma China has also cast its eyes to the international market while satisfying domestic needs. In 2006 over 80,000 professional visitors came to SNIEC, 20% international. This year we have done better in international promotions, which will guarantee better export opportunities for the domestic companies.

We hope companies in Shandong (Jiangsu, Anhui, Hunan, Zhejiang, Guangdong) will cherish the opportunities bauma China has brought to us. We also hope our friends from the media would follow your local companies on the show. I sincerely welcome you to Shanghai this November and enjoy the success of bauma China with us!

Thank you!