Analysis: China's manufacturing era to the Chinese equipment era

Abstract "China's equipment is going abroad, especially to strengthen cooperation with emerging market countries. It can not only help the transformation and upgrading of infrastructure in these countries, but also help to digest China's excess capacity, improve the quality of equipment and service levels, and benefit the bilateral and multi-party, not only Conducive to China-EU cooperation, there are also...
"China's equipment to go abroad, especially to strengthen cooperation with emerging market countries, can not only help the transformation and upgrading of infrastructure in these countries, but also help to digest China's excess capacity, improve the quality of equipment and service levels, and will benefit bilateral and multi-party, not only Conducive to China-EU cooperation, but also beneficial to the world." Premier Li Keqiang arrived in Romania on the 25th local time, immediately launched intensive diplomatic activities, non-stop "selling" Chinese equipment, announced cooperation to build the Hungarian Railway.

Professor Dong Xiaojun, deputy director of the Department of Economics of the National School of Administration, said that the equipment manufacturing industry as a breakthrough from the “manufacturing power” to the “manufacturing power” has realistic strategic significance. With the “Made in China” era and the “China Equipment Era”, China Manufacturing’s position in the global value chain is upgrading to “smile”.

The global value chain is the "sword"

Dong Xiaojun pointed out that in the past 30 years, China's rapid economic growth has benefited from the participation of the global industrial chain and value chain. But the global value chain is the "sword": on the one hand, the global value chain has shaped China's manufacturing system, China has got rid of poverty and backwardness; on the other hand, if China is attached to the low end of the global value chain for a long time, it will fall into " Middle income trap." It can be said that the current status of China's industry in the global value chain is "there are wolves before, there are tigers" and is being attacked by both sides. China's exports must get rid of the impression of small commodity manufacturing, must go out of the low end of the value chain, and comprehensively build an industrial structure dominated by high-end manufacturing.

"So, for a big country with employment pressure, how can we achieve industrial upgrading and solve employment pressure? Ideally, China's manufacturing industry can not only manufacture leather shoes and socks, but also make aircraft and rockets. What to build? Undoubtedly rely on equipment." Dong Xiaojun said.

The equipment manufacturing industry is a symbol of a country's strategic industry and industrial rise, and is the foundation and core competitiveness of a country's manufacturing industry. As the backbone of the modern industrial system, the equipment manufacturing industry has a strong correlation with other industries and is highly driven. It is a high-employment, energy-saving and resource-rich, high value-added industry. Taking the equipment manufacturing industry as a breakthrough from a "manufacturing power" to a "manufacturing power" has realistic strategic significance.

"Going out" is the only way for China's equipment manufacturing industry to go from strong to strong. Dong Xiaojun said that at present, China's equipment manufacturing industry faces two major problems, one is the weak ability of high-end product research and development, and the other is the overcapacity of low-end products. Both of these issues can be solved through overseas expansion, and overseas expansion can be both high-end and low-end.

Go high-end: get technology, brand and sales network

"Going high-end means that China's equipment manufacturing industry expands to developed countries in Europe and America to obtain technology, brand and sales network." Dong Xiaojun pointed out.

At present, the proportion of equipment manufacturing in the industrialized countries such as Europe and the United States accounts for more than 40%. The famous brands of global equipment are mainly gathered in the United States, Germany, Italy, Finland and other countries. They hold the core technology of equipment manufacturing industry and are the industry leaders. . For example, in Europe, the market share of all-terrain cranes is over 80%, and the United States, Japan and other countries are mainly tire-type cranes.

“The high-quality assets of European and American countries have become the main acquisition targets of Chinese equipment manufacturers.” According to Deloitte’s latest report, in the first three quarters of 2012, the amount of overseas M&A transactions of Chinese equipment manufacturing companies accounted for 45% of the total overseas M&A transactions of Chinese manufacturing. %. The United States and Germany are the main target countries for Chinese overseas mergers and acquisitions. In the first half of 2001-2012, China’s mergers and acquisitions in the United States and Germany occurred in eight and 19 transactions respectively.

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