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China Daily Website

China challenged to upgrade industries: Caterpillar

Updated: 2013-03-11 17:35
( Xinhua)

BEIJING -- China is facing a tough task in upgrading its industries, a senior executive from US-based construction equipment maker Caterpillar said Monday.

"Industrial upgrading is at the top of the agenda for China's further economic reforms. China needs a strong industrial and manufacturing system to support its goal of evolving from a large industrial country to a strong one," said Chen Qihua, vice president of Caterpillar Inc.

China's manufacturing industry, which has slowed amid slack external demand, is being challenged by poor innovation, excessive competition for low-end products and insufficient core components and key technologies, Chen said.

The overcapacity of low-end products has been a problem for China's construction equipment industry, Chen said.

China's economic growth fell under 8 percent for the first time since 1999 last year, mainly due to cooled manufacturing production and property investment.

A new wave of industrialization will require technologically advanced products, better efficiency, lower resource consumption and less impact on the environment, Chen said.

"Urbanization, technological innovation, new energy development, energy-saving efforts and emission reduction will become a driving force for China's growth over the next decade," he said, adding that Caterpillar has full confidence in the sustainable growth of the economy.

A full-year economic growth target of 7.5 percent was specified in a government work report delivered to the first session of the 12th National People's Congress last week.

Caterpillar's global revenues in 2012 increased 10 percent year on year to $65.88 billion, down from 41 percent in 2011 amid global economic uncertainties.

 
 
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