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World

Big machines, small signs of recovery in China

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World

Big machines, small signs of recovery in China

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COMING UP:Big machines, small signs of recovery in China

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00:00:00
>> A peek under the hood of China's economy, heavy machinery makers rolling out their latest models at the Bauma Trade Fair in Shanghai, the largest of its kind in the world. Sales peaked in 2011 at $35 billion. But more recently, construction and building have slowed with the economy and sales of big equipment are only expected to reach $9 billion this year.
00:00:24
Still as Reuters' Brenda Goh reports from the fair, vendors are optimistic of a better year ahead.>> Many that we've spoken to, they are saying that they are seeing contracts and new orders coming in the last couple of months, and they credit this to a whole range of factors.
00:00:39
Some are saying that there are new road and rail projects that the local governments are starting. Others are saying that recent increases in commodity prices is getting mining projects to start moving again. And, as well, the housing market in China has begun to increase, which is all driving demand for their machines.
00:00:56
>> These companies also have Beijing to thank for it's massive One Belt, One Road plan, building infrastructure links connecting China with Europe and other parts of Asia.>> That has driven demand for construction projects as well as financing from China towards those countries And these equipment manufacturers are seeing the benefits of that, because they are seeing companies order their products to bring to places like Pakistan, to Laos, to be used on construction projects there.
00:01:22
>> Nobody is expecting a quick return to the good old days. In fact, some industry giants like Caterpillar, Hitachi didn't even bother to show up to Bauma fair this year. But there are encouraging signs on the horizon, with equipment sales expected to grow in 2017 for the first time in five years