Increasing Joint Ventures to Facilitate Sales of Agricultural Equipments in China: Ken Research

July 2014  

Chinese and foreign firms have been constantly increasing their cooperation for technological development and exploring the untapped market in China. Joint venture between the firms is characterized by the foreign company holding majority shares and essentially creating its subsidiary in the country. The dual advantage of the feature is that while the foreign firm gains better access to the Chinese market, in addition to lower cost of labor and raw materials, the domestic company is entitled to adopt any new technology from its foreign principals.

With respect to international cooperation, China is visibly keen on opening up its market to facilitate the entry of foreign companies in exchange of new technology. The government encourages foreign firms to supply farm machinery products which are required by the country’s agricultural sector and that cannot yet be manufactured by the Chinese enterprises. 
 
“In order to cover the technological gap between the domestically manufactured and imported products, the government is also open to the establishment of joint ventures between Chinese and foreign enterprises.”– according to the research report ‘China Agricultural Equipment Industry Outlook to 2018- Promoted by Favorable Government Policies’ by Ken Research 
 
The demand for agricultural equipment in China is largely stemmed from the rising need for food security, shortage of farm labor and the growing realization of the advantages of farm automation. The agricultural equipment industry in the country is still in the stage of development and is anticipated to continue on its path towards maturity. The production value of the farm equipment industry is projected to increase at a CAGR of 11.5% from 2013-2018.
 
The report provides detailed overview of the sales agricultural equipment in China and helps readers in identifying the ongoing trends in the key segments of the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will aid industry consultants, agricultural equipment manufacturing enterprises, dealers of agricultural equipment, marketing companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.