CHINA FIRE PROTECTION MARKET

In 2018, the Chinese government reorganized various military and public security bureaus into a new government body named the Ministry of Emergency Management (MEM). MEM will help integrate China’s scattered disaster-relief resources to cope with the country’s frequent natural disasters and accidents. 

MEM replaced the State Administration of Work Safety and absorbed functions from the Ministry of Public Security (firefighting), Ministry of Civil Affairs (disaster relief), Ministry of Land & Resources (geological disaster prevention), Ministry of Water Resources (drought and flood control), and the Ministry of Agriculture (prairie fire control).

In 2019, China’s fire protection market was $15.63 billion, a 10% year-on-year increase from 2018. As China continues to develop, more robust firefighting procurement requirements will emerge. Provincial and municipal policies provide the basis for large-scale expenditures, but the preference may be to purchase Chinese-made equipment. 

The competition for low-end and medium-level equipment is fierce. There are about 5,000 small and medium-size companies with low market concentration.  Reportedly, some prospective Chinese buyers have been instructed to purchase domestically-made equipment to avoid complicated clearance from China Customs. American companies should enlist CS China for commercial diplomacy to help improve market access in U.S. fire protection exports.

For more information, please contact Mr. Zheng Xu at zheng.xu@trade.gov.