Well-known businesses there include construction equipment makers Sany Heavy Industry and Zoomlion, local rivals of Caterpillar.

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But you have companies like Mindray Medical International and in the heavy construction industry Zoomlion is expanding worldwide.

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In 2008 it advised Zoomlion, a struggling heavy-equipment SOE that it had previously helped restructure, on its acquisition of CIFA, an Italian firm.

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Sany and Zoomlion, both heavy industry equipment makers, have become the sixth and seventh largest in their field in a short period of time.

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This is an embarrassing setback for Caterpillar, which has expanded aggressively in China and competes with domestic heavy-machinery manufacturers like Zoomlion and Sany.

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