|
AEM in China
China Services Expand – Expositions and Import Regulations Targeted
|
AEM's Al Cervero with China's State Economic and Trade Commission Deputy Director |
|
AEM steps into role as a major player in the region – as its efforts to help members penetrate the Chinese construction equipment marketplace have evolved to a higher level, with new services, new in-country activities and a new staff structure in both the Milwaukee and Beijing offices.
AEM Senior Vice President Al Cervero and Kaien Li, the Association’s new International Marketing Coordinator-Asia, took a 10-day trip to China late in 2001 and brought back exciting news about preliminary discussions with government agencies and leading trade show organizers, recommendations from the Association’s China Advisory Committee on trade show participation, and the latest information about the Association’s new “CM-1.com” Chinese language construction equipment Web portal.
Opening the Used Equipment Market
 The AEM meetings with high-ranking State Economic & Trade Commission and Department of Industry Planning officials on a variety of industry topics produced surprisingly positive results, Cervero reports.
China’s Deputy Director of the Department of Industry Planning agreed to seriously consider loosening the nation’s ban on importing used equipment.
Several factors, including commitments from manufacturers to certify the quality of their used equipment and to provide adequate after-sale support, as well as an increasing demand for quality equipment in China, created an atmosphere in which government officials would consider the Association’s proposal to allow manufacturers to sell their own used equipment in China.
Easing Rental Regulations
Exciting news about preliminary discussions with government agencies and leading trade show organizers. Recommendations from the Association’s China Advisory Committee.
Another significant result of AEM’s meetings was China’s agreement to continue to work with AEM to address member needs.
|
|
Also discussed were China's strict regulations regarding operating rental companies. AEM and Chinese government officials agreed this was a future topic of interest.
China currently has onerous restrictions for funding of rental companies, including registering capital of no less than $20 million USD and that the Chinese partner must contribute at least 20% of the registered capital.
AEM made it clear, however, that its primary interest at this time on behalf of the membership is the used equipment discussion. The Association wants to successfully resolve used equipment market issues before turning its attention to rentals.
Another significant result of these meetings was China's agreement to continue to work with AEM to address member needs in the changing Chinese marketplace as the country adapts its business practices to enter the World Trade Organization.
Trade Show Consolidations
Under direction of the Association’s China Advisory Committee, Li and Cervero also met with the China Council for the Promotion of International Trade (CCPIT) – organizers of the China Transpo Show and the Power Transmission Control Show – as well as staff from the China National Construction Machinery Corp. – organizers of the Beijing International Construction Equipment Show (BICES).
These major trade fair organizations agreed with the members of the China Advisory Committee that the high frequency of small Chinese trade fairs results in high exhibitor costs and diluted attendance.
All parties involved agreed to research the possibility of AEM taking a lead role in working with them to create a regional show in Southern China and also to consolidate the current smaller shows into an international event that could fit into the show cycles of CONEXPO-CON/AGG and BAUMA.
>>Go to CM-1.com Online
>>Go to China Office, International Services Department Restructures for Improved Service
>>Go to Exhibit Pavilions Update - China 2002 Focus
<<Back to Advisor Index
|
