Fastest Declining Industries in China by Revenue Growth (%) in 2019

1. Policy Banks in China

2018-2019 Revenue Growth: -7.4%

Three banks make up the Policy Banks industry: the China Development Bank, the Agricultural Development Bank of China and the Export-Import Bank of China. These policy banks were established in 1994 to develop and oversee the policy operations of China's state-owned professional banks. These banks were also established to promote exports of mechanical and electrical products.

Industry revenue is expected to decline at an annualized 9.3% over the five years through 2019, to $46.8 billion. This decline can be attributed to decreasing interest rates and a lower Renminbi benchmark credit rate for financial institutions. The industry has undergone reforms over the... Learn More

2. Ship Building in China

2018-2019 Revenue Growth: -5.8%

Over the five years through 2018, the Ship Building industry in China has been declining at an annualized rate of 7.2% to $55.18 billion. This industry's activities are highly concentrated in Jiangsu, Zhejiang, Shandong and Shanghai. Foreign-owned enterprises generate 29.5% of industry revenue. The largest two shipbuilding groups, CSSC and CSIC, produce over 30.0% of domestic metal ships.

In 2012 and 2013, the weak economy around the globe led to decreases in international trade. As such, industry exports declined. The output volume of new ships fell 15.1% and 21.5%, respectively. In 2014, affected by downturn in the ship market, low international... Learn More

3. Wired Telecommunications in China

2018-2019 Revenue Growth: -4.2%

The Wired Telecommunications industry is part of the telecommunication services sector. In terms of revenue, the industry is the second largest in the sector, after the Mobile Telecommunications industry (IBISWorld report 6012). However, the industry's share of telecommunications sector revenue has been declining since the early 2000s. Mobile telecommunications have rapidly developed over the past decade with both third-generation (3G) and fourth-generation (4G) mobile technology, allowing more consumers to substitute fixed-line telecommunication services with mobile ones. This trend is well reflected in the total number of fixed-line subscribers, which is expected to decrease by 5.4% in 2019, to 177.8 million,... Learn More

4. Newspaper Publishing in China

2018-2019 Revenue Growth: -3.6%

Revenue for the Newspaper Publishing industry is expected to fall at an annualized 5.6% over the five years through 2019, to $9.4 billion. This includes an expected revenue decline of 5.0% in 2019. Rising internet usage has reduced demand for newspapers, particularly in China's large cities. Additionally, rising newsprint paper costs have reduced industry profit margins.

The industry has low market share concentration compared with developed countries, although the number of establishments has increased over the past five years. Certain newspaper publishers dominate specific regions in China. For example, Beijing Daily Group accounts for over 60.0% of total newspaper circulation in... Learn More

5. Oil & Gas Drilling in China

2018-2019 Revenue Growth: -3.2%

Revenue for the Oil and Gas Drilling industry in China is expected to decrease 5.2% annually over the five years through 2019, but year-on-year growth is volatile. Growth in China's economy has been slowing down, which has led to a decline in the domestic crude oil price. As a result, revenue declined early in the five-year period and has had varied growth since, with an estimated 9.9% increase in 2019 to $169.2 billion.

There are three major participants in the Oil and Gas Drilling industry: China National Petroleum Corporation (CNPC), China National Offshore Oil Corporation (CNOOC) and China Petrochemical Corporation... Learn More

6. Iron Ore Mining in China

2018-2019 Revenue Growth: -3.1%

Revenue for the Iron Ore Mining industry in China is expected to decline at an annualized 5.1% over the five years through 2019, to $118.2 billion. In 2014 and 2015, sharply falling downstream demand and iron ore prices led revenue to decline by 4.9% and 20.4%, respectively. Over 3,770 enterprises operate in the industry, with total employment of 593,268 and expected total output of 805.2 million tons of iron ore in 2019. Imported iron is expected to satisfy over one-third of China's domestic demand in the current year. The price of iron ore has fallen over the past five years.... Learn More

7. Nitrogenous Fertilizer Manufacturing in China

2018-2019 Revenue Growth: -2.7%

Revenue for the Nitrogenous Fertilizer Manufacturing industry in China is expected to increase by 3.2% in 2019, to $36.3 billion. Over the past five years, industry revenue has decreased at an annualized rate of 4.7%. There are 203 nitrogenous fertilizer manufacturers operating 631 establishments with a total of 177,148 employees in the industry.

In December 2006, the industry was opened to foreign investment. However, the level of globalization remains low, as only 5.6% of enterprises are foreign-owned. Nitrogenous fertilizer manufacturing is energy-intensive, and foreign enterprises do not receive the same resource and raw material subsidies.

Continued agricultural sector structural adjustments that focus... Learn More

8. Motels in China

2018-2019 Revenue Growth: -1.9%

Industry revenue for the Motel industry in China is expected to decrease 6.1% in 2018 to $19.6 billion. Over the past five years, revenue has been falling 3.4% annually. There are about 66,934 motel establishments in China employing about 2 million people with an estimated payroll of $4.2 billion in China.

Currently, this industry accounts for about 33% of China's accommodation sector. Half of the sector's revenue is generated by hotels (IBISWorld industry report 6610), which provide higher quality services and surroundings than motels. The ongoing establishment of hotel chains and family hotels has intensified competition and reduced the size of... Learn More

9. Coal Product Manufacturing in China

2018-2019 Revenue Growth: -1.8%

The Coal Product Manufacturing in China has exhibited steady growth over the past five years, driven by expanding domestic demand from manufacturing industries and households. Industry revenue is expected to decrease at an annualized rate of 3.8% over the five years through 2019, to an estimated $3.4 billion.

The number of industry enterprises is expected to decrease by an annualized 0.9% from 176 in 2014 to an estimated 168 in 2019. Many of the companies currently operating in the industry are small, and extensive restructuring over the past few years has led to some mergers and acquisitions. This trend led to... Learn More

10. Motorcycle Manufacturing in China

2018-2019 Revenue Growth: -1.6%

The development of the Motorcycle Manufacturing industry in China has been affected by restriction policy and popularity of automotors in recent years. Revenue for the industry has been decreasing at an annualized rate of 3.1% in the five-year period through 2018 to reach $23.61 billion.

In July 2010, new motorcycle emission standards were implemented, resulting in a 1.1% decline in output in 2011. Moreover, pressed by domestic inflation, government subsidies for purchasing motorcycles have been decreasing, and competition from electric bicycles and automobiles (IBISWorld industry report 3721) have intensified. Consequently, ACMR-IBISWorld anticipates decrease rate of 5.2% in 2018.

The Motorcycle Manufacturing industry... Learn More