REGIONAL REPORT
China 2025” strategy have further driven the adoption of CNC systems. With its expansive industrial capacity, China remains a key player in contributing to global market share particularly in automotive, electronics and heavy machinery sectors.
As industries move towards smart factories and Industry 4.0, the significance of real-time data for process monitoring and control is becoming more apparent. The integration of CNC machines with IoT and advanced data analytics is revolutionising how manufacturers manage their manufacturing processes.
Cargo freight containers at the Hong Kong sea port.
Image: Timelab, Unsplash
Machine tools in focus
“ The Asia-Pacific region, led by China, is poised to dominate the industrial machine tool market for several compelling reasons,” commented analyst, DI Market. It has highlighted several reasons for this in its list below:-
■ Manufacturing powerhouse: China has established itself as the world’ s manufacturing hub, with a vast and expanding industrial base across numerous sectors. This necessitates colossal and continuous demand for machine tools to support production.
■ Government support and investment: The Chinese government has actively promoted the development of its domestic machine tool industry through various initiatives, including subsidies, R & D funding and preferential policies. This has led to the growth of strong local players and increased adoption of advanced manufacturing technologies.
■ Growing domestic demand: Beyond exports, China’ s enormous domestic market for finished goods, ranging from consumer electronics to vehicles, fuels a substantial and sustained demand for industrial machine tools.
2025 was a year of volatility for Asian economies and markets
■ Technological advances: While historically relying on imports, Chinese manufacturers have significantly invested in research and development, closing the technology gap and offering competitive solutions across various machine-tool types.
■ Supply chain integration: Asia-Pacific benefits from a welldeveloped and integrated supply chain for machine-tool components, contributing to cost-effectiveness and faster delivery times.
An eye on the future
“ 2025 was a year of volatility for Asian economies and markets. Liberation Day tariffs could have derailed growth for the exportoriented region, but exemptions on key exports such as semiconductors, electronics and pharmaceuticals were key in reducing the effective tariff rate which allowed most Asian economies to escape the brunt of the impact,” said JP Morgan analysis in January 2026.
Looking ahead to 2026, it is optimistic about global AI tailwinds continuing to support tech exporters like Taiwan and South Korea. It expects real GDP growth of 4.3 %( range: 4.1 – 4.6 %) in 2026 for China, moderating from 2025 due to the high base for export growth.
“ China will probably continue to grapple with structural economic challenges although its impressive pace of tech innovation can yield select winners in some sectors. Japan’ s macro-outlook is complicated by stubborn inflation and a behind-the-curve central bank, but its equities continue to present plenty of medium-term opportunities, though markets appeared to have priced in plenty of optimism already. Southeast Asia presents interesting select opportunities related to AI and global supply chains although the key drivers of each individual economy and market are varied,” continued JP Morgan.
Bangladesh
Selected country forecasts
In its World Economic Outlook for October 2025, the IMF lowered Bangladesh’ s economic growth projections for the fiscal year 2025 / 26 to 4.9 per cent from its earlier projection of 5.4 per cent. Inflation is projected at 8.5 per cent by end FY26, primarily driven by supply side shocks earlier in 2025.
China
The 2025 TIMTOS manufacturing exhibition in Taipei, Taiwan.
In December 2025, the IMF projected China’ s economy to grow by 5.0 per cent in 2025 and 4.5 per cent in 2026. Despite resilient growth, imbalances remain significant amid weak domestic demand and deflationary pressures.
“ The key policy priority is to transition to a consumption-led growth model, which is one of the government’ s stated objectives in the 15th Five-Year Plan,” commented the IMF.“ Long-standing structural challenges will also weigh on the economy over the medium term. Growth is expected to moderate due to slowing productivity growth, an ageing population, elevated debt levels and decreasing returns to investment,” it added.
28 | ismr. net | ISMR February 2026