China Mining Safety Equipment
China is the world’s largest coal producer and the country’s coal and mining industry reached $700 billion in revenue in 2022. With over 1,500 major mining operators—75% of which are underground operators—China is also a major market for mining equipment and services, including mine safety equipment, which accounted for $200 million of operators’ expenditures last year.
China has recently experienced an increasing number of mining accidents as the government seeks to ramp up coal production. In 2022, the number of coal mine safety accidents rose from 91 to 168, and the number of deaths grew from 178 to 245, representing the first such increase in several years. The sudden spike in incidents has put pressure on mine operators to upgrade their safety infrastructure and equipment and the China Ministry of Emergency Management has also recently issued new safety requirements for mine operators aimed at reducing the number of accidents.
Opportunities
Safety Monitoring / Alarm Systems
Recent PRC policy planning documents have called for the construction of green and intelligent mining demonstration projects, which will encourage mine operators to upgrade their equipment and expand the use of intelligent solutions. In particular, demand for high-end safety monitoring/alarm system solutions and related staff training services will likely rise. Strong maintenance and after-sales service programs for such equipment is a key consideration for Chinese mine operators and will influence their procurement decisions.
Gas Detector
China’s gas detector equipment market is expected to reach $693 billion by 2028. Traditionally, less-expensive Chinese-made portable gas detectors have dominated the market, but with the increasing focus on safety, there is room for higher-end, imported products such high precision and quality assurance detectors.
Personal Protection Equipment (PPE)
Miners’ health is an increasingly important priority for large mining operators and following the recent string of safety incidents, operators are more willing to pay a premium for top-quality equipment. According to data from U.S. Census Bureau, U.S. PPE exports to China were $11 million in 2021, over 50% increase than the year of 2019. Additionally, recent budgetary planning documents issued by the National Development and Reform Commission indicate the government’s intention to increase expenditure on upgrading PPE and safety equipment.
Market Access and Obstacles
Certain electronic equipment requires a China Compulsory Certification (CCC) mark from the China Certification Center for Security and Protection, and U.S. exporters should check whether this requirement applies to their products seeking to enter the market. More information on CCC mark is available here.
The Chinese market presents a challenging and complex IPR and legal environment. U.S. exporters should establish a strategy to manage IPR-related risks before entering the market. Specifically, companies should consider how to structure their business transactions to minimize risks of intellectual property theft and how to protect and enforce their rights in the most economical and cost-effective way.
Conclusion
Despite the impact of the pandemic, China’s coal and mining industries remains strong and increased policy support for mining safety by Chinese government presents an opportunity for high-quality manufacturers.
For more information, please contact Office.beijing@trade.gov