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China International Industry Fair opened on November 1, 2006 in Shanghai New International Expo Center.

China's machinery manufacturing industry can provide complete sets of large advanced equipment including large gas turbines, large pump storage groups, and generating equipments such as nuclear power sets, ultra-high voltage direct-current transmission and transformer equipment, complete sets of large metallurgical, fertilizer and petro-chemical equipment, urban light rail transport equipment, and new papermaking and textile machinery. Machinery and transportation equipment have been the mainstay products of Chinese exports, as China's leading export sector for successive 11 years from 1996 to 2006. In 2006, the export value of machinery and transportation equipments reached 425 billion US dollars, 28.3 percent more than in 2005.

General assembly workshop of Tianjin FAW Xiali Automobile; the company has implemented over 50 technical innovations in core technology and car quality in recent years.

In the past five years, the output of China's automobile industry has tripled and its world ranking has risen from eighth to third position. The market share of domestically developed automobiles has shown a clear increase, accounting for 41.5 percent of vehicles and 25.7 percent of sedans. In 2006, China produced 7.28 million vehicles, and sold 7.22 million, becoming the world's third country in the history of automobile development to have the capability of producing seven million vehicles. Automobiles, the high-class consumer durable with the lowest rate of household ownership in China, now show the fastest retail growth rate of any commodity.

To further improve the application level of clean car technology in China, reduce exhaust gas pollution and promote diversification in the ways of powering vehicles, the Ministry of Science and Technology and the Advisory Leading Group Office of the National Clean Vehicle Campaign launched the "Clean Car Key Technologies R&D and Application Demonstration Project." The project has already come up with intellectual property rights and products of its own, providing technology support for the demonstration and spread of clean cars. China has developed working prototypes of electric, mixed power and fuel cell sedan cars and coaches. At the Beijing International Hydrogen Energy Congress in May 2005, the fuel cell sedans and coaches developed by China attracted the attention of many international experts; in the Bibendum Clean Car Challenge in October 2006, China’s fuel cell sedans were awarded four As. At present, test demonstrations of electric cars are underway in Beijing, Wuhan, Tianjin, Weihai and other cities. Beijing and Shanghai also undertook the International Fuel Cell Bus Demonstration project supported by the United Nations Development Program and the Global Environment Facility.