Existing Structural Problems in China's Machine Tool Industry-1

May 26, 2020

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Strong Competition by Multinational Companies, Difficult to Upgrade Domestic Enterprises


Western machine tool multinational companies regard the Chinese market as a strategic battleground. In the past 20 years, Germany, Japan and South Korea, such as more than 100 manufacturers in China to invest in factories (SKDs) and set up sales points. European and Japanese companies are mainly in the high-end market, Korea and other general machine tools directly with the domestic mainstream models to compete. Foreign-funded enterprises in the Chinese market for many years, enjoy a variety of preferential policies, the establishment of a wide range of contacts, high salaries to attract talent. Domestic large enterprises and military enterprises in the middle and high-end machine tool orders, basically by foreign enterprises monopoly. A group of powerful multinational companies, taking advantage of the difficulties of domestic enterprises, plans to control China's large-scale backbone enterprises. Such as Dalian machine tool bankruptcy, local enterprises only Dalian Guangyang in the persistence. Mazak, INDEX, GROB, THK and other wholly foreign-owned enterprises piled up in Dalian high-tech district to build factories, high-paying recruitment of the original Dalian machine tool lean talent. After the brain drain, it will be difficult for companies to recover; Shanghai, Nanjing and Wuxi, which used to have a good machine tool manufacturing base, have either closed down or barely survived. In recent years, Schuler and other German enterprises went to Taicang, Jiangsu Province to build factories, the merger of local Jinfang Yuan, Yang forged and other enterprises, Jinan II machine tools pose a great threat.


Domestic machine tool enterprises generally reflect the problems are: heavy corporate tax burden, thin profit (profit-rich high-tech products market in the hands of foreign enterprises), research and development funds tight, low treatment of employees, talent stability difficult. Research and development of high-grade products, need to involve basic theoretical research and overcome important technical bottlenecks, more aware of lack of funds. Nevertheless, for the sake of the industry and its own long-term development considerations, many enterprises overcome their own difficulties, adhere to technology research and development, but independently developed new products by the advantages of competitors. Therefore, independent research and development only play a "knock on the door" to remove import barriers, the responsibility of the national task of enterprises also difficult to get the opportunity for mass production.


One of the major difficulties of independent development is that domestic users have formed a dependence on foreign high-end products, unwilling to purchase domestic machine tool products. The reason is that the workpiece is expensive, enterprises to ensure normal operation and efficiency, can not afford to bear the responsibility. However, if the new technology and new products of domestic enterprises are not used, verified, improved and stereotyped opportunities, they cannot produce in mass production, let alone cost competitiveness, and industrial upgrading is impossible to talk about.

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