"Made in China 2025" drives the rise of high-end equipment manufacturing

High-end equipment manufacturing industry is the pillar industry in emerging industries, the equipment manufacturing industry during the "twelfth five-year" a strategy is to "upgrade" restructuring, innovation, a goal is "to promote the equipment manufacturing industry by the big teams," as the core and key of the equipment manufacturing industry, high-end equipment manufacturing industry as a strategic emerging industry as the industry development provides a "fertile soil".


Now with the launch of "Made in China 2025" plan, high-end equipment manufacturing industry is ushered in a historical development of new opportunities. The ideal of "China equipment, equip China" and "Made in China, created in China" has taken a solid step towards the complete realization of the road.


Recently, "Made in China 2025: High-end Equipment Manufacturing and Industrial Application Collaborative Innovation Summit forum" was held, which was attended by the National Development and Reform Commission, The Ministry of Industry and Information Technology, the National Energy Administration and other relevant ministries and commissions, heads of departments, bureaus and centralized management departments, as well as representatives of major industrial users in China.


The theme of the forum is "Breakthroughs in Key Technologies, Integration to Promote Manufacturing, collaborative Innovation and Development", focusing on supporting independent innovation, in-depth research on the ways and paths of collaborative innovation across fields and industries. It focuses on collaborative research and development, collaborative manufacturing, collaborative promotion and collaborative service as the implementation method. Taking China's first low-speed high-torque permanent magnet composite motor with independent technology patent as a case, the application prospects of new products and new technologies and collaborative innovation cooperation mechanism are deeply discussed.


Machinery industry information institute, vice President of cabos c said, according to the overall requirements of "made in China 2025" in order to further deepen the fully understand the industry of significance to the construction of manufacturing power, vigorously promote the manufacturing and industrial equipment, such as application innovation synergy and integration of industry development, to study and formulate the relevant ministries and commissions of the state plan, detailed policies and measures to improve the working mechanism, It is very important to do basic information service well. The purpose of this forum is to deepen the understanding and understanding of "Made in China 2025", implement the innovation-driven strategy, promote the collaborative development of China's manufacturing industry and industrial application industry units, establish and improve the mechanism of investigation, case analysis and information collaboration, and ensure the implementation of information research tasks.


High-end equipment manufacturing industry is sought after by foreign capital


Shen Danyang, spokesman of the Ministry of Commerce, revealed at a recent press conference that from January to July this year, high-tech manufacturing industries such as industrial automatic control system device manufacturing, China's communication equipment manufacturing and computer machine manufacturing grew rapidly, with the actual use of foreign investment up 405.4%, 366.4% and 149.9% year-on-year respectively. The above growth rate is much higher than the national average. In the first seven months of this year, actually utilized FOREIGN investment in China's manufacturing industry decreased by 5.4% year on year. High-end equipment manufacturing is an emerging industry supported by China in recent years.


Insiders believe that under the background of slowing foreign capital inflow into China, high-end equipment manufacturing industry attracts rapid growth of foreign capital, which shows the rapid development of China's high-end equipment manufacturing industry from the side. In the first seven months of this year, China's actual use of foreign investment increased by 7.9% year on year, the Ministry of Commerce said at a regular press conference. It was up 9.6% in July from a year earlier. From January to July, fdi actually used in the service sector totaled 47.5 billion US dollars, up 19.6% year on year, accounting for 62% of the national total. Financial services, scientific research and comprehensive technology services saw the fastest growth of 381.1%, 93.1% and 57.1%, respectively.


Bai Ming, deputy director of the International market research Department of the Academy of Commerce, said that China's economy is undergoing transformation and upgrading, and the change in fdi utilization structure reflects the change in China's economic structure, which is also in line with the new normal of China's economic development in the future.


Bai Ming also pointed out that in the international industrial division of labor, China's economic position also appears corresponding changes. In the past, it was mainly labor-intensive, but in the future, the utilization of foreign capital will be more in line with the change of China's industrial policy, and gradually flow to high-tech and high value-added industries. Because our country in recent years also in the development of these industries, in these industries, the use of foreign capital also has greater space.


The entry of foreign capital into high-end manufacturing industry may bring both alternative and complementary influences to domestic related industries. Alternative influences are a challenge for our own industry development, but more complementary opportunities should be seen. In the era of globalization, where division of labor becomes more and more detailed, there will be more opportunities for collisions and cooperation between industries. Such as China's high-speed rail and home appliances and other fields have experienced this process, but also achieved industrial leapfrog development. Therefore, high-end manufacturing can attract foreign investment, which is not only a reflection of China's economic transformation and upgrading in the field of foreign investment, but also a shift in position in the global industrial chain.


Go abroad to expand overseas markets


In recent years, domestic overcapacity has made many industries, especially high-end equipment manufacturing industry, difficult to operate. "going abroad, part of the overseas" has become the first choice for many equipment manufacturing enterprises to break the business dilemma. With the implementation of "One Belt and One Road" strategy, equipment manufacturing enterprises have more convenient conditions to "go global". The Ministry of Industry and Information Technology said recently that China's equipment manufacturing has three advantages of products, enterprises and policies, and high-end equipment manufacturing will focus on going global in the future.


Data show that in 2014, the export volume of China's equipment manufacturing industry reached 2.1 trillion yuan, and the export volume of large complete sets of equipment was about 110 billion DOLLARS. The overall scale of China's equipment manufacturing is one third of the world's total, with obvious advantages. The total manufacturing volume of electric power equipment accounts for about 61% of the world's total, and the shipbuilding industry accounts for 41% of the world's total. China has built 16,000 kilometers of high-speed rail and is building more than 10,000 kilometers, ranking first in the world in ownership of high-speed rail.


From promoting China's high-speed rail and nuclear power to promoting Chinese equipment, Premier Li Keqiang has been committed to pushing equipment manufacturing capacity to "go global". With the acceleration of the "Belt and Road" national strategy, China's high-end equipment manufacturing "going overseas" also presents an accelerated trend.


In January this year, Xi 'an Shaanxi Drum Power Co., LTD. (hereinafter referred to as "Shaanxi Drum Power") officially signed the equity transfer agreement with Czech EKOL, Spol. S.R.O. (hereinafter referred to as "EKOL"), and formally held the equity delivery ceremony in The morning of June 26, Czech local time in The Czech City of Burano. EKOL is a mid-sized steam turbine manufacturer in central and Eastern Europe. It has a great advantage in industrial driven steam turbines, and its products are in a leading position in the world in steam consumption and other indicators.


According to Cheng Yongru, economic and commercial counselor of Shaanxi Drum Group and Embassy in Czech, Shaanxi Drum's acquisition of Czech EKOL Turbine Company with more than $50 million is China's largest investment in the Czech manufacturing sector in recent years, accounting for about 17% of China's total investment in The Czech Republic.


In May, China Railway Corp., or CRCC, announced that a consortium of its China Railway Eryuan Group Engineering Co., ltd. and a Russian company had won the bid for the survey and design portion of the Moscow-Kazan high-speed rail project in Russia. A major breakthrough has been made in The "going global" of China's high-speed railways. Since the beginning of this year, China has signed cooperation agreements with France, Argentina, South Africa and other countries in the field of nuclear power plants, and will build six nuclear power plants in Pakistan and export more nuclear reactors to Pakistan.


"High-end equipment manufacturing is at the top of the value chain and at the core of the industrial chain, and is also a major force in promoting the implementation of the Belt and Road Initiative. Promoting high-end equipment manufacturing to "go overseas" can not only improve the image of China's manufacturing industry, but also transfer part of the effective production capacity out of China, which can solve the problem of overcapacity facing the Chinese economy. Shenzhen Guocheng Investment Consulting Co., Ltd. chairman and general manager Sun Zhong said.


Xiang Songzuo, chief economist of Agricultural Bank of China, said China's high-end manufacturing has a solid foundation to "go global", and now it needs synergies to make efforts to "go global" the whole industry chain, rather than individual enterprises.


Industry experts point out that there are several characteristics of China's high-end engineering equipment industry "going global" : the export of engineering equipment products is steadily increasing, the product structure is moving from low-end to high-end, the product quality is greatly improved, and the export proportion of product series and complete sets of equipment is on the rise. The overseas mergers and acquisitions of engineering equipment manufacturing enterprises increased rapidly. From the overseas M&A projects in recent years, Chinese enterprises have a good momentum of overseas M&A and develop rapidly. Relying on engineering projects, it has driven the upgrading of high-end equipment.


Accelerate brand building


After more than 30 years of reform and opening up, China's manufacturing industry has a complete system and the foundation for further development. Even in high-end equipment manufacturing, some areas are emerging. However, in terms of branding, "Made in China" still needs more work.


Made in China, 2025 high-end equipment manufacturing and industrial application of collaborative innovation peak BBS, national energy bureau chief economist, said li zhi energy equipment is an important part of Chinese equipment, but the present stage our country lacks some energy equipment such as GE, ABB, Siemens large international enterprise group, there is little equipment into the global top 500 enterprises.


Zhejiang Technical Supervision Bureau director Gao Yingzhong once pointed out that the current "Made in China" still lack of overall brand benefits, a large number of OEM production in the low-end of the international industry chain, no pricing power, profit distribution voice, can only earn meager processing fees, individual brand construction process is still slow. On the whole, its influence and competitiveness in the international market are not high. To change this, China urgently needs to launch a "Made in China" brand.


High-end equipment manufacturing industry is at the core of the industrial chain, an important support for national economy and national defense construction, and a key engine to promote industrial transformation and upgrading. However, there is still a big gap between China's high-end equipment manufacturing industry and the world's advanced level.


Under the current background of global economic integration, the development strategy of "One Belt and One Road" proposed by China will bring huge market opportunities for the whole high-end equipment manufacturing industry. Launching the "Made in China" brand is a practical and effective way to promote economic transformation and upgrading. It is also an important reflection of accelerating the transformation of government functions, giving play to the decisive role of the market, and promoting quality improvement and brand creation.


"Made in China" represents the national image, high standards must be a high starting point positioning, put the "made in China" brand into the market and society, collection of quality, technology, service, reputation, has a rich cultural connotation, to the quality and integrity as the core area, a comprehensive brand has become a model of industry transformation and upgrading, and the important pillar of economic and social development.