The machinery industry serves as the cornerstone of the national economy, acting as the backbone that provides essential equipment and tools for all sectors. It plays a vital role in driving industrialization and is a critical material and technical support for national development. The advancement of this sector significantly influences the technological progress and overall industrial growth of related fields. So, where does China’s machinery manufacturing industry stand today?
"We are a large manufacturer, but not yet a strong one." This statement reflects the current state of China's machinery industry. After more than half a century of development, especially since the reform and opening-up, China has built an independent industrial system with considerable scale and strength. Its product output has gradually moved into the global forefront.
However, despite this progress, China remains a "big" country in terms of manufacturing, not a "strong" one. Many of its mechanical products lack globally recognized brands, and there is a shortage of products with independent intellectual property and strong international competitiveness. A significant portion of key technologies and core components still depend on foreign sources. Moreover, a robust innovation system—centered on enterprises, driven by market demand, and integrating production, research, and education—has yet to be fully established. Intellectual property protection and the broader social environment remain inadequate. Additionally, metrics such as new product contribution rates and product life cycles lag far behind those of developed countries. Scientific and technological achievements often fail to translate into real productivity quickly. Basic research, cutting-edge technology, industry standards, and key technologies are also underdeveloped, according to Yu Zhen, president of the China Federation of Machinery Industry.
So why is this situation occurring? Yu Zhen points to the lack of independent innovation capabilities as the main issue. She explains that most Chinese machinery companies lack the high-level investment, long-term strategic planning, and strong R&D capabilities seen in multinational corporations. Many can only make incremental improvements to their products, while only a few have the capacity to develop next-generation solutions. This discrepancy between size and capability is concerning. Without improving independent innovation, the industry may face a lack of sustainable momentum, which could hinder the country’s economic development and long-term stability.
To strengthen innovation, companies must first focus on self-improvement. According to Yu Zhen, the first step is for enterprises to enhance their own independent innovation capabilities. This involves increasing investment in science and technology, accelerating the establishment of enterprise technology development centers, and shifting from basic product development to the creation of independent technologies. These centers should provide forward-looking technology reserves and drive continuous technological upgrades.
Additionally, companies should promote product innovation, establish a development strategy centered around leading products and supported by independent intellectual property, and accelerate the replacement of outdated products. They should also work to build strong brand identities and create internationally recognized names through persistent breakthroughs.
Secondly, it's important to balance imported technology with independent innovation. Companies should leverage the spillover effects of joint ventures and cooperative production, while gradually shifting from heavy reliance on foreign technology to a focus on self-driven innovation. This includes the digestion, absorption, and re-innovation of imported technologies. By learning from past experiences of repeated technology imports and "market-for-technology" strategies, China can shorten the technological gap with developed nations and enhance its global competitiveness.
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