The Belt and Road Initiative has brought a sea change to China's construction machinery companies, as well as other participating countries. But still there are many challenges. CGTN's Li Jianhua visited LiuGong in Guangxi Zhuang Autonomous Region, one of China's leaders in the industry, to find out what they are.

China's first wheel loader. Built in the 1970s, the machine was retired and put in a museum in 2008. The Chinese company has been upgrading its models over the years.

China, not considered strong in manufacturing construction machinery, is now growing as an international player.

About 90 wheel loaders are produced daily in this factory alone and more are expected to be made and exported. Workers feel the pressure.

ZHAO CHUANYU DIRECTOR OF ASSEMBLY SHOP, LIUGONG "We sold 17,500 such wheel loaders in 2018 in China, the number for the overseas market is 3,750. We saw an increase of over 30 percent year on year. This year, we aim higher – 20,000 such machines should be sold in China, and 4,500 abroad."

Plans are set, yet the goals won't be easily met. China's demands for heavy machinery took a dip starting in 2011 and didn't start picking up again until six years later, a turning point.

Liu Gong's sales volume improved mainly in southeast Asian countries. Figures show sales in Laos increased by 180 percent year on year, in Myanmar over 120 percent, and the Philippines over 100 percent.

Sales Increase in 2017 Laos 180% Myanmar 122% The Philippines 104%

LI DONGCHUN DIRECTOR OF INTL. DIVISION, LIUGONG 45 YEARS OLD "There are more projects concerning Belt and Road participating countries, either about infrastructure or transferring China's overcapacity. Machinery equipment is in demand. We noticed these projects are flourishing and the capital is mainly from China, hence our increasing sales volume."

The company acquired a Polish machinery maker named Dressta, which is exported to over 80 countries.

LI DONGCHUN DIRECTOR OF INTL. DIVISION, LIUGONG "We have introduced many experts and invested in research and development a lot. And we do see good results. We're expected to sell a series of new products in the next three to five years. And we hope our intellectual property rights, which take lots of painstaking work, can be protected."

Regardless, China is still lagging behind countries such as the U.S. and Japan in making engines and hydraulic pressure products – core technologies in the industry.

LI JIANHUA LIUZHOU, GUANGXI ZHUANG AUTONOMOUS REGION "China's construction machinery companies have been expanding in recent years as more opportunities are emerging. This is due in large part to the country's attempts to connect with the outside world, especially via the Belt and Road initiative. Cases of merger and acquisition have drawn much attention, and the market is rather competitive. Along with the opportunities, many challenges lie ahead. LJH, CGTN, LIUZHOU, GUANGXI ZHUANG AUTONOMOUS REGION."