China's Industrial Equipment Exports Rise 2.5-Fold in 10 Years... "Korea Should Tailor Its Approach to Advanced and Emerging Markets"

KITA Analyzes China's Industrial Equipment Exports
China's Share in Emerging Markets Rises to 29.6%
South Korea's Share in the Same Markets Falls to 4.1%

As China's exports of general-purpose industrial equipment rise rapidly, a report has recommended that Korean companies capitalize on the reliability of their supply in advanced manufacturing markets and meet demand for upgrading production processes in emerging manufacturing markets.

The Institute for International Trade at the Korea International Trade Association (KITA) made the recommendation in a report titled "The Rise of China's Industrial Equipment Exports and Changes in Global Supply Structures," released on November 1.

According to the report, China's industrial equipment exports reached $257.2 billion in 2025, about 2.5 times the $104.2 billion recorded in 2015. The average annual growth rate was 8.2%, outpacing those of consumer goods (1.8%) and intermediate goods (6.0%). The report said China's role is expanding beyond supplying consumer and intermediate goods to providing equipment that supports the manufacturing production base of other countries.

As China's exports have expanded, competition in industrial equipment among major manufacturing countries has intensified. The Export Similarity Index (ESI) for industrial equipment between South Korea and China rose from 46 in 2015 to 54 in 2025. Over the same period, the index between Germany and China increased from 55 to 62, while that between Japan and China rose from 44 to 47.

A view of the Korea International Trade Association. KITA.

China's influence as a supplier in the global industrial equipment import market has grown primarily in versatile product categories. In addition to power equipment and food and textile processing machinery, where it already had strengths, China overtook Germany in logistics and material-handling equipment. In the general-purpose and other equipment category, it tied with Germany for first place.

By expanding its competitiveness in equipment needed across manufacturing, China has broadened its supply base to meet demand from a variety of industries.

The report cited manufacturing investment in emerging economies such as ASEAN countries and the expansion of Chinese companies' overseas production bases as factors behind China's growing influence as a supplier. It said that amid weak domestic demand, Chinese equipment manufacturers have sought overseas markets, while their price competitiveness has also supported export growth.

China's growing presence has been more pronounced in emerging manufacturing markets. China's share of industrial equipment imports in these markets rose from 21.1% in 2015 to 29.6% in 2024. By contrast, in advanced manufacturing markets such as the United States, its share edged up from 12.8% to 14.0% over the same period. The report suggested that U.S. trade sanctions have constrained China's market expansion.

Korea International Trade Association's Institute for International Trade

In advanced manufacturing markets, where China's share gains have been limited, South Korea has maintained a relatively stable position. Its market share rose from 3.0% in 2015 to 3.3% in 2024. This contrasts with Germany's and Japan's shares, which fell over the same period from 16.5% to 15.0% and from 7.5% to 6.4%, respectively.

By contrast, in emerging manufacturing markets, where China's share has risen rapidly, South Korea's share fell from 6.3% to 4.1%.

The report recommended that Korean companies strengthen their position in advanced manufacturing markets by emphasizing supply reliability and their ability to respond to local needs. It stressed the need to focus particularly on new procurement demand in the U.S. market, where China's share has declined.

In emerging manufacturing markets, the report recommended that Korean companies secure equipment procurement opportunities by participating from the early stages of establishing and expanding production facilities, and then pursue related demand for automation, higher precision, and equipment replacement.

Heo Seulbi, a researcher at the Korea International Trade Association, said, "As China rapidly expands its supply of industrial equipment by leveraging its price competitiveness, Korean companies must differentiate themselves through reliable quality and delivery, as well as their ability to supply parts and provide maintenance." He added, "The government should also support responses to local certification requirements and the identification of potential customers to reduce the burden on Korean companies seeking to expand overseas."

This content was produced with the assistance of AI translation services.