15.4 billion! Japan Has Taken a Big order for Chinese Machine Tools, 30 Days of Exports to China Surged 34%?

As we all know, Japan has a position in the car manufacturing sector, but its main export target remains the Chinese market. According to news this week, the country's machine tool orders to China hit a new high in June, up more than 34% year-on-year to a total of 15.4 billion yen. So why did the Chinese market suddenly increase orders for machine tools in the country? In fact, the country's reason for this time to win a big single, mainly because of the strong recovery of China's auto industry.

According to the Association of Automobile Manufacturers, China's new car sales are expected to rise by 11.6% in June to 2.28 million units. And according to experts estimate that the next three months will continue to show the situation of rising. This will be a new milestone for the restart of China's automotive industry. In addition, China's automobile manufacturing field has also maintained good results. According to data from the end of last month, China's manufacturing PMI recorded 51.1% in July, up 0.2% year-on-year.

Although the increase is small, but has been in the line of glory for five months in a row. Even Japanese experts have said that China's manufacturing sector is now the world's most dynamic market. But it is worth noting that the country's machine tool sector is still in a "difficult" state, despite China's increased orders for japanese machine tools. According to the country's June machine tool orders, the total amount of orders was only 67.1 billion yen, down 32% from the same period last year.

You know, the last time it was below 70 billion yen, ten years ago! So why is the country's machine tool sector still flagging as orders have increased in China? In fact, the country's machine tool sector has not yet recovered, largely because the North American market is still affected by the outbreak, and the automotive market is still in a "pause" state, which led to a reduction in orders to Japan's airports.

Nissan Motor Co., for example, reported a 50 per cent drop in sales in the US, while global sales fell by as much as 48 per cent to Y1,170bn, down more than 50 per cent from the same period. However, with the recovery of the Chinese market, the country's machine tool industry has also played a key role!