Machine Tool Facing Global Competition in the Industry Chain

On June 16, 2011, the U.S. Department of Commerce announced the implementation of the "Exceptional Regulations for Strategic Trade Licensing," which excludes China from 44 countries and regions that enjoy trade facilitation measures. With the enhancement of domestic enterprises’ innovative capabilities, governments and enterprises in developed countries such as the United States, Japan, and Germany have increased their awareness of Chinese companies’ prevention and increased their control over the export of advanced technologies and equipment to China. The industrial chain of the machine tool industry is long, and one link is “clamped”. The development of the entire industry is constrained. Overall, the cost of our imports of advanced technology and equipment has risen sharply. According to statistics, the average unit price for import of metal processing machine bed sheets has increased from 67,000 USD in 2007 to 111,000 USD in 2010.

Due to the large amount of foreign investment currently entering China's key infrastructure sectors, a supply chain-type closed monopoly has been formed for the domestic basic spare parts market. Not only does profits pass through this supply chain to China, but it also has significant impact on the safety of the entire industry and even economic security. Impact. At the same time, multinational corporations have shifted from large-scale manufacturing operations to global expansion of R&D, headquarters base establishment, and investment and financing, and can then build an increasingly powerful R&D system and production system by dominating globally advantageous resources.

Analyst Luo Baihui believes that under the backdrop of no obvious signs of recovery in the global advanced economies, China’s machinery industry will face more challenges in the global competition landscape, frictions will become more frequent, and will further shift from low-end products to high-end products. Product proliferation spreads from the product trade link to the institutional environment. It spreads from a single “two-against-one-guarantee” trade remedy investigation to intellectual property rights, technical trade barriers, and industrial competitiveness surveys. Before the outbreak of the financial crisis, the domestic market share of the US equipment manufacturing industry, which has been declining, has risen from 67.4% in 2007 to 69.72% in 2010.