Machinery makers asked to brace for hardship amid slowdown (2)

"The machinery industry's growth has slowed down to a moderate speed after a period of rapid expansion," Cai said.

On the one hand, economic growth tends to slow down as demand gradually drops as China advances into the middle and latter stage of industrialization, he explained.

On the other hand, there have not been major technological breakthroughs that can drive the sector's growth at at pace.

He said the sector will find it hard to maintain very high growth rates in the future, but it can still achieve moderate increases.

"New strategic industries including high-end equipment manufacturing will eventually become new pillars for the sector's sustainable growth," according to Cai.

China's 12th Five-Year Program for the 2011-2015 period made it clear that China would support seven new strategic industries, including new information technology, energy conservation and environmental protection, new energy, biology, new materials, high-end equipment manufacturing, and new-energy cars.

Among the seven industries, both high-end equipment manufacturing and new-energy cars belong to the machinery industry.

Cai said growth at a moderate speed is not necessarily a bad thing.

"Moderate growth of higher quality is more desirable than rapid growth of poor quality and the industry should dedicate itself to achieving this kind of high-quality growth," he said.

Recommended Features: Vibrant Opportunities amid Transition From 'Made in China' to 'Created in China' A Journey to Cultural Renaissance The Vision of A Pillar Industry China: A Fast-growing Force in IPR IPR in China: Local Roots Bearing Global Fruits A Decade of Fastest Development Eastern Boom Lightens Western Gloom Chinese firms 'potential Trojan horses'？