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Japanese machine tool recovery hopes for Chinese market

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Japanese machine tool recovery hopes for Chinese market

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 "Japan's macro-economy is in a severe situation of rapid deterioration, so the machine tool industry has been hit." "China is the world's largest consumer of machine tools, and in the Chinese market, Japan is China's largest supplier," said Miyake Inaba, vice president of Japan Machine Tool Industry Association, during the 11th China International Machine Tool Exhibition

By implication, the Chinese market will be the lifesaving straw for the recovery of Japanese machine tools. At the exhibition, there were 46 companies from Japan, with a total exhibition area of 6300 square meters.
Machine tools are known as the "mother of industry". The quality, renewal speed, strain capacity and efficiency of mechanical products all depend on the machine tools that process the products to a considerable extent. The development data of machine tool industry can reveal some basic information of a country's industry.
Japan's current economy has been affected by the world financial crisis in the second half of last year, and the main markets in Europe and the United States continue to be depressed, while the yen has been appreciating, directly impacting the export industry. Therefore, enterprises are restraining investment in equipment, and the trend of production reduction is obvious. As a result, the situation of domestic enterprises in Japan has been greatly deteriorated, and there has never been a decline. In 2008, Japan's economic growth rate was negative 0.6%, which was the negative growth again in nine years.
The economic downturn is directly reflected in orders from the machine tool industry. From 2006 and 2007 to the first half of 2008, after sustained high-speed growth, from the second half of 2008, the amount of machine tool orders received by Japan has turned down sharply, and the decline has expanded month by month, until November and December of that year, less than 50% compared with the same month of the previous year. In the whole year, the total order volume decreased by about 18% compared with the previous year, reaching 130.1 billion yen, and the growth in the first half of the year disappeared.
From the perspective of internal and external demand, due to the decrease of new orders received and the increase of delivery delay and cancellation of orders received, it has decreased by 22% compared with the previous year. This is the first time since 2002 that there has been a double-digit negative growth every six years, and the decline has exceeded the external demand. Among them, except for steel, non-ferrous metals and aviation, shipbuilding, transport machinery, government and public institutions, all industries are lower than the level of the previous year, and the domestic demand ratio has also dropped to about 44%, the lowest level ever.
In terms of foreign demand, the main markets in Europe, North America and Asia all saw demand shrink in the second half of last year, and the overall order volume decreased by about 15% compared with the previous year. Fortunately, the amount of orders received is 734.3 billion yen, which is only lower than the record high level in 2007. Among them, the order amount from China is 129 billion yuan, which is about 19% less than the previous year. However, it accounts for a high proportion of the whole foreign demand, accounting for about 18% of Japan's important foreign demand market as a whole. At the 2008 Japan International Machine Tool Exhibition (JIMTOF), large machine tool manufacturers in China also officially displayed for the first time, attracting people's attention.
Nowadays, with the depression of macro-economy, the situation of Japanese machine tool industry is more severe. The accepted orders in February were about 20.4 billion yen, a decrease of about 84% compared with the same month last year, but an increase of about 7% compared with January, giving a glimmer of hope. But does the cold winter of machine tool industry stop here? Mr. Chuang is still cautious, saying it needs to be published in the near future.