Industry News

Over the past thirty years of reform and opening up, China's manufacturing industry has seen significant development, with substantial improvements in both the total volume and technological level of manufacturing. The machinery manufacturing sector has made great strides in product research and development, technical equipment, and processing capabilities. However, there are few brands that possess independent intellectual property rights. For example, although the brands of Haier, Hisense, and TCL have been "domesticated," when you buy an air conditioner from a store, the salesperson will tell you that the compressor is from Japan, and when you buy a refrigerator, they will still say the compressor also comes from Japan. Through analysis and research on the current state of China's machinery manufacturing, industry insiders generally believe that China's mechanical manufacturing lags behind developed countries in Europe and America by nearly 30 years. In the face of the challenges posed by global economic integration in the 21st century.

The main problems existing in the machinery manufacturing industry are as follows:

1. The worries of joint ventures

Since the reform and opening up, China has introduced a large amount of technology and equipment, which has greatly promoted the development of the machinery manufacturing industry. However, this has also brought many concerns to people. In April 2006, the merger plan between XCMG Group, leading in China's construction machinery industry, and U.S.-based Carlyle Group was basically finalized. The U.S.-based Carlyle Asia Investment Company acquired 85% of the shares of ——Xuzhou Construction Machinery Group Co., Ltd., a subsidiary of XCMG Group, for $375 million. Although the process of taking control was complicated by the intervention of Sany Heavy Industry in June, it marked the temporary end of the plan that many Chinese economists feared would see Caterpillar dominate China's construction machinery industry. In March 2005, the world's largest machinery manufacturer, ——Caterpillar Inc., unexpectedly acquired a 40% stake in Shandong Heavy Industry at a low price. Subsequently, rumors emerged in the construction machinery industry that the aggressive Caterpillar had formulated a grand acquisition plan aimed at "consuming China's construction machinery." XCMG Group, which had long been the dominant player in the construction machinery industry, was certainly one of its targets. In 2007, Caterpillar established the Caterpillar Road Machinery Plant in Xuzhou, with main products including rollers, cold milling machines, asphalt concrete pavers, and cold recycled pavement equipment/stabilized soil mixers. Since the 1990s, major multinational corporations have entered the domestic machinery market, primarily focusing on automotive, electrical appliances, cultural office equipment, instruments and meters, general machinery, and construction machinery. These industries account for about 80% of foreign direct investment in the machinery industry.

The business strategy of foreign investors is: "the basic premise is that they must maintain their control in the investment activities in China". At present, multinational enterprises are particularly keen on acquiring the dominant enterprises in China's high-growth industries. At present, we can see the oil pump industry and bearing industry.

There are many technical black holes. In addition to facing "foreign enemies", China's machinery manufacturing industry also has many problems of its own.

Once upon a time, the imported machinery of enterprises became a publicity stunt. A food enterprise in Guangdong province boasted like this: "The company has introduced many Japanese and Taiwan automatic production equipment with exquisite technology, and its excellent product quality has won the favor of consumers."

Industry insider