Question 1: What are your predictions for the future trends of the global engineering machinery industry?

Zeng Guang'an, Vice Chairman and President of Guangxi Liugong Machinery Co., Ltd.: After 30 years of rapid growth, the Chinese economy has entered a stage of relatively medium-speed growth. For the engineering machinery industry, strategic thinking needs to be adjusted. Last year, the economic growth rates of BRICS countries all declined, but unlike China, their currencies depreciated significantly while our currency appreciated. China is an export-oriented country, which has hit us. From the perspective of China's engineering machinery exports, due to currency appreciation, Chinese products have approached the price levels of Europe, the US, Japan, and South Korea. Enterprises can no longer rely on price as an advantage, which also determines that we need to adjust our approach.

Ronald DeFeo, Chairman and CEO of Terex: I am not an economist, but to borrow a common description from economists: the global economy is mixed. The US is showing a strengthening trend, but the recovery is very fragile. Europe is diverging, with Germany performing well, while Italy, Portugal, and Ireland are burdened. As for China, I believe it has reached the worst trough, and tomorrow should be a better situation than today. As manufacturers, we should focus on executing business plans rather than hoping the market will recover on its own.

Zhan Chunxin, Chairman and CEO of Zoomlion: Globally, the engineering machinery industry is relatively overcapacity. However, through innovation and product structure adjustment, market opportunities can be increased. For the Chinese market, when China's GDP growth is below double digits, the engineering machinery industry is severely overcapacity. In the past few years, the development speed of China's engineering machinery industry was generally twice the national GDP growth rate, that is, 20%~25%. Then, in the future, calculated at a rate of 7%~8%, as predicted by the industry association, the industry's development speed will be around 15%.

Technically, the application of new materials and new technologies will greatly improve product quality, thereby changing construction methods. For example, the application of carbon fiber has enabled concrete pump truck booms to exceed 100 meters, which was unimaginable in the past. This is how products, through innovation in technology and structure or by creating new markets, can still provide new market space for engineering machinery enterprises. Another example is aerial work platforms, which are rarely used in China, where scaffolding is more common. Even for a street or mall sign in the city, scaffolding is used. In fact, aerial work platforms represent a new product space.

Wang Min, Chairman and President of XCMG Group: Although the world economy is relatively sluggish, development remains the main theme, and there are still many opportunities. Especially for Chinese enterprises, they have transitioned from an expansion phase to a stage of transformation and upgrading. Therefore, Chinese enterprises have the opportunity to bring their high-quality products and the excellent services unique to Chinese people to the world market. Internationalization is still a path that must be firmly and successfully taken in the next step. I am full of confidence in China's engineering machinery industry, and I am also full of confidence in China's economy.

Whoever can do well in China's engineering machinery market may maintain a good position in the world. Similarly, as Chinese enterprises, if they can do well in the world market, they will move to the front ranks in the international market. Therefore, internationalization is very important for Chinese enterprises.

Yuichi Tsujimoto, Representative Executive Officer and President of Hitachi Construction Machinery Co., Ltd.: The world economy will continue to grow in the long term, but the growth cannot be at a very large rate; it will be slow and steady. After the US subprime mortgage crisis, the world economy has indeed shown a slowing trend. Under this premise, we find that the entire construction machinery market actually shows a large oscillation trend of plus or minus 30% every year. The growth trend of the Chinese market in the future should also be maintained at around 10%~15% per year.

Of course, in the past two years, the Chinese government invested 4 trillion RMB to stimulate the economy, which led to expectations for this market among manufacturers and caused us to increase investment in this market, ultimately resulting in an imbalance between supply and demand and product surplus. The entire market is now not only competitive within China but also expanding to overseas markets, which will lead to a global competition landscape.