The first high-speed train to be exported to Europe rolled off the production line at Zhuzhou Electric Locomotive Co in July 2015. [Photo/China Daily]

But the whole industry has been shrinking as a result of oversupply and a slowing economy.

Zeng said the only way out is to make inroads into overseas markets, especially those along the Belt and Road Initiative, which are likely to give a boost to the sluggish industry.

He was referring to the blueprint unveiled by President Xi Jinping in 2013.

The Belt and Road Initiative is a trade-and-infrastructure network that includes the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

The network connects Asia, Europe and Africa, and passes through more than 60 countries and regions with a population of about 4.4 billion.

LiuGong set up its regional headquarters in Singapore to manage a distribution network, support for local distributors and after-sales services for major projects.

Last year, 178 excavators and cranes from LiuGong worth $14 million were exported to Uzbekistan and Cambodia, the company said.

While LiuGong is planning ahead to grab a share in the heavy equipment market of Southeast Asia, some others are switching their focus to the farming industry by rolling out tractors instead of cement mixers to bag foreign orders.

For instance, Zoomlion Heavy Industry Science and Technology Development Co said it is expanding its overseas presence in the farming machinery industry, targeting Southeast Asian and Central Asian countries such as Cambodia, Vietnam, Pakistan and Kazakhstan.

The current overseas operations, however, account for a small share of the company's overall business, Zhang Jianjun, a senior executive at the company, said.

But the figure will grow to about 40 percent by 2020, he said.

Zhang said Asian countries' demand for farming machines is surging due to rapid modernization in recent years.

Chinese companies are competitive in terms of advanced technology, reliability and lower prices, he said. "We believe the agricultural equipment market will be a major force in driving our company's growth."

Shipbuilding

As the global shipbuilding industry was hit by declining demand in recent years, Shandong-based CIMC Raffles Offshore Ltd shifted its sights to export of offshore oil rigs and engineering vessels.

The subsidiary of China International Marine Containers (Group) Ltd, the country's transportation equipment producer, registered $1.8 billion in sales of offshore engineering products from international markets in 2014. Energy companies from Malaysia, Norway and Russia were its main clients.

Yu Ya, president of CIMC Raffles, said Chinese shipyards should look at high-tech areas to keep growth as low-end markets yield no profits for them.

"Developing maritime engineering vessels and equipment and racing against South Korean and Japanese competitors will be key to Chinese shipyards," Yu said.

Statistics from the China Association of the National Shipbuilding Industry show Chinese shipyards received orders for new vessels with a collective capacity of 11.19 million dead weight tons in the first half of 2015, accounting for 27.6 percent global market share.

Light rail systems

CRRC Zhuzhou Electric Locomotive, maker of light rail rakes operating in Malaysia, built a manufacturing and maintenance plant in the state of Perak in that country.