China's first coal gas engine debuted in 1908, and 100 years later the country has become one of the world's leading engine producers. Occupying about one third of the world's internal combustion engine output, the industry in China is composed of 1,300 domestic enterprises engaged in engine, spare parts and accessory manufacturing. In 2007, China's total engine production was 57 million units, including an export amount of over 10 million units, and the total power exceeding 1 billion KW.

Some experts predict that China's engine production will reach 60 million units in 2008, with the total power output of 1.1 billion KW.