XCMG targets greater global reach amid tariff challenges

XCMG officials inaugurate three new European initiatives during the company’s bauma 2025 press conference. (Image: Mitchell Keller)

Speaking at the world’s largest construction trade show he revealed that 46% of XCMG’s sales are currently international and that the company’s immediate goal is to grow international revenue to over 50% and, ultimately, beyond 55%.

While 2024 was originally the target year for passing the 50% mark, Yang Dongsheng cited global uncertainties – such as tariffs and inflation – as reasons for a delay. “There are a lot of tariffs, so there are many uncertainties in global business,” he commented.

The Chairman directly addressed the impact of tariffs imposed by the US, which have raised costs for Chinese manufacturers. “It is a disadvantage for Chinese companies. The cost will rise for us,” he noted.

To mitigate these pressures, he revealed that XCMG is considering more globally distributed resources and localised production, but heavy investment in North America is unlikely in the near term due to high labour costs and immature supply chains.

Instead, XCMG is accelerating its European expansion. He pointed to the company’s first European training centre in Düsseldorf, Germany, designed to upskill partners and customers in technical and after-sales support.

The launch of XCMG’s own European financial leasing company will also support customers, making XCMG the first Chinese manufacturer to provide direct financing services in the European market. Early feedback, he said, has been positive.

North America and Europe have long been focuses for XCMG and President Trump’s tariffs may push the Chinese OEM to increase its efforts in Europe.

“XCMG, in the European market, at the very beginning, nobody knew us. But gradually the customers know this brand and they now trust us, accept this brand. Our purpose is to put our roots in the European market, and grow here.”

Read the full interview in Construction Briefing in the near future.