‘Since the Belt and Road Initiative was proposed in 2013, it has brought significant advantages and opportunities for China’s small excavator (mini excavator) export industry. Below are the main advantages of the ‘Belt and Road’ policy for China’s small excavator export industry:
1. Substantial growth in market demand
Advantage: Countries along the ‘Belt and Road’ (such as Southeast Asia, South Asia, the Middle East, Africa, etc.) have a strong demand for infrastructure construction, including highways, railways, ports, energy and other projects, which directly drives the demand for small excavators and other construction machinery.
Impact: China’s small excavators have become the preferred equipment for infrastructure projects in these regions with the advantages of high cost performance and adaptability, and the export volume has increased significantly.
2. Policy support and financial security
Advantage: China provides financial support for the ‘Belt and Road’ projects through policy banks (such as the Export-Import Bank of China and China Development Bank), and many projects use Chinese equipment, including small excavators.
Impact: It is easier for enterprises to obtain orders, and at the same time, it lowers the purchase threshold for overseas customers, which promotes the export of small excavators.
3. Trade facilitation
Advantage: China has signed a number of trade agreements with countries along the Belt and Road, reducing tariff barriers and simplifying customs clearance procedures.
Impact: The cost of exporting small excavators to these countries is reduced, logistics efficiency is improved, and market competitiveness is enhanced.
4. Localised services and brand promotion
Advantage: The government encourages enterprises to set up branches, service centres and warehousing bases in countries along the Belt and Road to provide localized services.
Impact: Enterprises can better meet customers’ needs, improve after-sales service, and enhance brand influence and customer loyalty.
5. Technical Cooperation and Standard Export
Advantage: China promotes technical cooperation through the ‘Belt and Road’ initiative, and promotes the technical standards of Chinese construction machinery to countries along the route.
Impact: The technical standards and certifications of Chinese small excavators (e.g. CE certification) are gradually recognised by the countries along the route, which reduces the market access threshold.
6. Regional Market Integration
Advantage: The ‘Belt and Road’ initiative promotes regional economic integration and increases the demand for infrastructure connectivity among countries along the route.
Impact: The increased application of small excavators in cross-border projects (e.g. China-Laos Railway, China-Pakistan Economic Corridor) further expands the market demand.
