The Development Status of Domestic Construction Machinery and Equipment Rental Industry

For a long time, the current situation of mechanical equipment in construction sites has been subordinate to construction enterprises, with the aim of serving their own construction, resulting in a low utilization rate and poor investment efficiency of mechanical equipment. At the same time, the machinery and equipment purchased by various enterprises are almost identical, with serious duplication of investment, resulting in a serious backlog of social assets. The severe aging of mechanical equipment and the large amount of idle equipment have become a heavy burden for construction enterprises, limiting the development and progress of mechanical equipment. After the establishment of the socialist market economy system, it is necessary to emphasize the investment efficiency of equipment. To socialize construction machinery, it is necessary to establish a social rental market for mechanical equipment as soon as possible, in order to activate fixed assets of mechanical equipment, reflect investment effects, improve the utilization rate of mechanical equipment, and achieve the goal of mechanical upgrading. Establishing a social rental market for mechanical equipment can improve the level of management, use, maintenance, and upkeep of mechanical equipment, which is conducive to reducing consumption and saving manpower, material resources, and financial resources; It is conducive to conducting technical training and international exchanges, and improving one's own quality.

However, due to various factors, the development of the mechanical equipment leasing industry is severely constrained.

The macro management of the leasing industry lacks a unified centralized department.

At present, the leasing industry is managed by departments such as the Ministry of Foreign Trade and Economic Cooperation, the People's Bank of China, the State Administration of Foreign Exchange, and the State Administration for Industry and Commerce. The power is decentralized and responsibilities are unclear, which can easily lead to friction and mutual shirking of responsibilities. It is difficult to coordinate and unify policies, causing China's leasing industry management to fall into a "vacuum zone" with no substance. On the contrary, there is currently no leasing industry association in China that has close ties with government regulatory authorities to coordinate, guide, communicate, and serve the business management and information of leasing companies.

The lack of leasing regulations to protect the normal development of the leasing industry has resulted in a long-term environment of "no legal basis, no rules to follow" for the leasing industry.

At present, there is no comprehensive leasing law in China aimed at protecting the legitimate rights and interests of leasing parties. There are only some simple provisions in the Economic Contract Law, General Principles of Civil Law, relevant documents of the Ministry of Finance, and the interim measures for financial leasing formulated by professional banks, which are far from meeting the practical needs of the leasing industry. The leasing industry has no legal basis, and there is no unified code of conduct for the parties to the leasing contract, making it difficult to effectively protect the legitimate rights and interests of the leasing contract. The legality of the leasing industry has not been protected in engineering bidding and credit review, which seriously hinders the normal operation and healthy development of China's leasing industry.

Lack of fiscal and tax policies to support the development of the leasing industry.

In order to support the development of leasing business, most foreign countries implement financial and tax preferential policies. However, China has long regarded leasing financing as a loan and treated it as a general commercial activity in terms of taxation. General banks do not accept mortgage loans and bank credit guarantees for the leasing industry, and the insurance industry does not participate in the insurance work of the leasing industry. This has become an obstacle to the normal development of the leasing market.

At present, the types of leasing business are relatively single, mainly limited to general import financing leasing and concurrent physical leasing.

In financial leasing, businesses such as leaseback and export leasing have hardly been carried out. In the physical leasing business, there is still little development of lease for sale services. The reasons for the single form of leasing are multifaceted, including the constraints of the state-owned asset management system, the lack of matching seller credit and credit insurance, the credibility of leasing media, and the fear of risks in the state-owned economy. The most obvious is the phenomenon of manufacturers only selling without leasing, which has a significant gap with similar foreign enterprises. These reasons have hindered the diversified development of leasing forms in China.

The serious arrears of rent have led to difficulties in the financial turnover of the leasing company.

According to relevant information, as of the end of 1994, 17 Sino foreign joint venture leasing companies were owed rent of up to 600 million US dollars. The huge arrears of rent have plunged various leasing companies into serious operational difficulties. With the establishment and gradual improvement of China's market economy system, it is believed that as an emerging industry, China's leasing industry can shoulder its historical responsibility and continue to grow and develop.