China’s production of industrial machinery is expanding by more than 17% every year. In 2009, it was worth $140bn, and by 2014 it will be worth $320bn – or 24% of the global machinery market – according to a new market assessment by IMS Research.

The growth of the Chinese market is being driven by a combination of local demand, recovering export markets and the transfer of industrial production to China. In addition, both state-owned and private Chinese companies find it easy to get government financial support and bank loans to purchase advanced production machinery.

The Chinese Government offers a 17% export rebate rate to encourage the export of machinery; and the rebate rate for some forms of machinery – including textile, agricultural and mining systems – is set to increase.

♦ In a separate report, IMS forecasts that the Chinese market for general motion controls will be worth $1.06bn by 2014, while the market for CNC controls will expand to $1.24bn.