China's role pivotal in global machine tool industry

As US tariffs introduce growing complexities for manufacturers navigating global markets, China's steadfast and pivotal role in the machine tool industry is poised to fuel further growth, said a leading German industry expert.

"If protectionism is coming back, it will be a challenge, especially for European manufacturers," said Markus Heering, executive director of the German Machine Tool Builders' Association, in an interview with China Daily.

"A lot of our members have their own subsidiaries in China. So that will be a challenge if tariffs are coming," Heering said, expressing concerns over the US' recent tariff policies and possible challenges on free trade that come with them.

Although German machine tool companies have set up subsidiaries in both China and the US, a huge difference between the markets is that the latter is not really producing machine tool technology with their own companies, he added.

"China has a lot, it is the biggest producer of machine technology, but the United States is more or less nothing," the German association leader said.

In this regard, Heering stressed the long-standing economic ties between Germany and China. "We need cooperation in the future and we need understanding of each other. Then we can do a lot of things together," he said. "What we are doing at the moment is working in close connection with the German government and talking to them (the US representatives)."

With its huge population and increasing demand for advanced technologies, Heering added that he sees a rosy future for China's machine tool industry.

"With a machine tool production volume of around $29 billion in 2024, China ranks first among the world's leading manufacturers," Heering said. "I see China as a big market and that is what we are doing, there is huge potential for us there."

In addition, 29 percent of the country's production is export-bound, and the most important customer groups include the electrical industry, mechanical engineering and the automotive industry, he added.

Looking ahead, Heering underscored China's growing influence in the global machine tool industry. "The key data means that China will again play an important role at EMO Hannover 2025," he said, adding that Chinese companies have an increasingly important role to play at this year's event which takes place in September.

To date, around 255 Chinese exhibitors, including well known suppliers such as Senfeng Laser and Shandong Weida Heavy Industry, are "not only presenting innovative machine solutions, but also underlining their importance as leading producers in the global market" through the industry fair, he said.

Heering noted that the global machine tool industry is undergoing a significant transformation, facing similar challenges across regions. These include intensifying competition, cautious investor behavior, rising costs, growing demand for sustainable products and the impact of an aging society, which exacerbates the shortage of skilled workers.

Additionally, the integration of emerging technologies such as additive manufacturing and artificial intelligence also requires continuous advanced training, further complicating the progress, he said.

Amid these challenges, Heering noted that China is making substantial strides in industrial production, driven by advancements in automation, sustainability, artificial intelligence and digitalization. "These advances can stimulate investments and boost demand for production technology," he said.