An Analysis Of The Development Trend Of The Multinational Coal Machinery Company In China

China is very rich in coal energy, with its history of coal mining tracing back to the 19 th century. At present, China is still the largest coal producing and consuming country all over the world, with a high growth rate of coal production every year ever since the Chinese Economic Reform. Many multinational coal machinery companies find the great potential in Chinese market and make investment into Chinese market. They set up new companies, found factories in China. Some of those large multinational companies complete their acquisition of local Chinese companies. However, after China’s access into WTO, as the booming development of local Chinese coal machinery companies, these multinational coal machinery companies are suffering a more and more difficult management in China. As a result, some of these multinational coal machinery companies have moved out of China market, some of them choose to stay in China. Meanwhile, Chinese coal market have been in an oversupply situation ever since 2011. In 2015, the United States carry out the clean energy plan,China coal enterprises makes the decision of coal industrial structure adjustment, and Chinese coal market starts to lurch down. The continued depression of coal market results in the low of coal industry, especially those coal machinery companies. The local companies can maintain their stability by taking advantage of their low prices; however, some multinational companies are abandoned by most of their Chinese customers due to their high prices for both equipment and repairing services, many domestic large coal mining group will not to purchase the multinational coal machine, in this case the multinational companies must pass through the transition to continue in the Chinese market. Multinational coal machine companies must re position the market, continue to expand the technical advantages, improve service quality, to achieve high-level international management and value chain localization policy. Only in transition can be a foothold in the Chinese market, and the transformation of multinational coal machinery companies will drive the overall level of China’s coal machine manufacturing industry,to lead the Chinese coal mining industry into a new chapter.