The future development of China's machinery industry is facing challenges in four areas

China news agency, Beijing, July 22 (Reporter Yan Xiaohong) - China Machinery Industry Federation executive vice president of the Wei-Chi Tsai admitted that although the first half of this year, China's machinery industry, the main economic indicators have achieved steady growth, but also facing many of the industry's future challenges. Wei-Chi Tsai told reporters today, China's machinery industry is facing the first big problem is the cost of expenses rising faster, especially in finance charges and interest and rapid growth year on year monthly growth rate has accelerated the trend； May this year before financial expenses machinery industry rose about 40% over the previous year increased 28.33 percent. Second, continued growth in imports of machinery products to China domestic market, the impact is huge. Tsai, vice president of that in the past two years, imports of machinery industry growth has been higher than export growth, the first half of Machinery Industry Foreign Trade deficit has been sustained, according to current trends, machinery industry is expected to be reproduced in the year after a lapse of six years foreign trade deficit. Third, a marked decline in growth of business orders and inventory of finished products increased significantly. He said that the first five months this year, machinery industry key enterprises in order increase of only 9.23% year on year, showing a trend of continuous decline, and last year more than 30% growth compared to, is showing a substantial decline. China's machinery products, future sales situation more difficult. Finally, the various elements of cost hikes, China's machinery products in the over-supply operation has become increasingly difficult under the pressure. In raw material prices； financing costs, labor costs, while overall price increases, the overall price index of China's machinery industry has not consistently exceeded 102%, a considerable number of key products, the price has seen a continued downward. Wei-Chi Tsai stressed that "1025" period is the deepening reform, accelerating the transformation of economic development in the crucial period； the face of these challenges, China's machinery industry must push forward structural adjustment, speed up transformation and upgrading. To increase the "going out" the pace of efforts to expand exports to alleviate the problem of insufficient domestic orders.