The Development Countermeasures Research of China's High-end Equipment
Manufacturing Industry
Gui-bin Men1,Yan Li2, Yi-xiu Liu3
1,2,3
Management department, Dalian Jiaotong University, Dalian,China
(mengguibin@126.com;1225liyan@163.com;mylyxheze@163.com)
Abstract - High-end equipment manufacturing industry
is one of the seven areas of the strategic new industry
,according to The National Twelve-Five plan.The
development of high-end equipment manufacturing industry
not only affects the growth of China's economy, but also
affects the strengthening of comprehensive national
strength.This paper briefly analyzes the current situation
about the development of the high-end equipment
manufacturing industry and the existing problems,then puts
forward some related countermeasures and suggestions to
the development of China's high-end equipment
manufacturing industry.
Keywords - advanced technology;development
countermeasures;high-end equipment manufacturing
industry; innovation
I.THE CONTENTS AND FEATURES OF THE
HIGH-END EQUIPMENT MANUFACTURING
INDUSTRY
The equipment manufacturing industry mainly refers to
the floorboard of the manufacturing industry, which provides
technical equipments for national economy and national
security, including seven categories, such as metal products,
general equipment, special equipment, transportation
equipment,
electrical
equipment,
electronics
and
communication equipment, instruments and cultural office [1].
High-end equipment manufacturing industry is a high-end
field of the equipment manufacturing industry. It is a high-end
strategic new industry, which is guided by the high technology,
and located in the high end of the value chain and in the core
link of the industry chain.It is the foundation and key to
promote the transformation and upgrading of China’s
industrialization. It is a strategic selection to seize the
commanding height of the future economy in science and
technology, strongly promoting a steady and rapid
development for China's economy.
High-end equipment manufacturing industry has some
characteristics, including dense technology, high added value
，and located in the core industrial chain, etc [2]. The
development goal of high-end equipment manufacturing
industry is that, through industrial structure adjustment, China
can eventually master the core technology for high-end
products, and make China have the ability to product high-end
products, and export products with high added value.
China's economy is in a critical period of development
transformation, the development of high-end equipment
manufacturing industry has become an irreversible trend. In
recent years, the development of high-end equipment
manufacturing industry is not only supported by the national
related policy, but also influenced by two factors, including
urbanization accelerating and domestic market expanding. In
such a major premise, the development of China’s high-end
equipment
manufacturing
industry
can
realize
great-leap-forward development from made in China to be
created in China.
II.THE DEVELOPMENT OF EQUIPMENT
MANUFACTURING INDUSTRY IN PRESENT
SITUATION
On the whole, China’s equipment manufacturing industry
has a large industry scale, complete range, and perfect system,
but the technology is at a low level [3].Actually, China is a big
country with equipment manufacturing industry, but not a
powerful country. From a quantitative point of view, China
has formed a number of special equipment manufacturing
bases, such as the communication equipment and computer
manufacturing base of the pearl river delta, the automobiles
and auto parts manufacturing base of the pearl river delta
arround Shanghai, the Major equipment manufacturing base
in Northeast, and the national defense equipment
manufacturing base in southwest and northwest [4]. The
number of enterprises and gross industrial output value of
China’s equipment manufacturing industry for recent five
years are shown in Table I and table II.
TABLE I.
THE DEVELOPMENT QUANTITIES OF CHINA’S EQUIPMENT
MANUFACTURING INDUSTRY IN RECENT FIVE YEARS(UNIT: PIECE)
Year
Industry
metal
products
General
equipment
Special
equipment
transportation
equipment
electrical
equipment
Electronics and
communications
equipment
Instruments and
cultural office
2006
2007
15573
18008
22905
26757
11615
13409
12586
14091
16905
19322
2
2008
1
24547
2
36919
1
18685
1
18808
1
25727
2
11220
9
14347
1
9709
4526
4
5620
4
4084
2
2009
1
2
2010
2
24771
2
2
25703
3
37374
1
3
39699
1
19147
1
1
20083
1
19441
1
1
20718
2
26443
2
27537
1
14284
1
14838
5
5716
Data sources: China Statistical Yearbook finishing（2007-2011）
5
5828
TABLE II.
GROSS INDUSTRIAL OUTPUT VALUE OF CHINA’S EQUIPMENT
MANUFACTURING INDUSTRY FOR RECENT FIVE YEARS(UNIT: BILLION
YUAN)
Year
Industry
metal products
2
2006
852.947
2007
2
2008
8
1144.708
1
1841.552
7
1059.198
2
2714.74
1
2401.907
1
1502.961
2
2009
1
1608.295
2
2736.152
1
1678.44
3
4173.032
3
3375.799
2
2010
1
2013.461
2
3513.274
1
2156.183
4
5545.263
3
4334.441
general
1
equipment
1373.476
2468.756
special
1
equipment
795.331
1452.13
transportation
2
equipment
2038.292
3339.528
electrical
2
equipment
1816.552
3042.884
electronics and
3
3
4
4
communications
3307.758 3922.377 4390.282
4456.263
5497.067
equipment
instruments
3
4
4
5
and cultural
353.927
430.799
498.449
508.331
639.907
office
Data sources: China Statistical Yearbook finishing (2007-2011)
From table I and table II, we can draw that the total
number of China’s equipment manufacturing enterprises from
2006 to2010 are respectively: 93377, 107333, 144653,
147176 and 154406. The gross industrial output value of
equipment manufacturing industry in China from 2006 to2010
are respectively: 10538.28 billion yuan, 12370.57 billion yuan,
15192.03 billion yuan, 16928.02 billion yuan,and 21686.14
billion yuan. The growth trend diagram is shown in Fig. 1 and
Fig. 2.
180000
154406
quantity(pieces)
160000
144653
140000
147176
120000
107333
100000
93377
80000
60000
40000
20000
0
2006
2007
2008
time(years)
2009
2010
Fig.1.The growth curve of equipment manufacturing industry in
China
the gross value of industrial
output(billions)
25000
23699.596
20000
16694.99
18536.312
15000
13515.281
10000
10538.283
5000
0
2006
2007
2008
time(years)
2009
2010
Fig.2.The output growth curve of equipment manufacturing industry in China
From Fig. 1 and Fig. 2, we can see that no matter from
quantity or gross industrial output value, China’s equipment
manufacturing industry is increasing year by year,which is
related to the development of China’s economy and the
attention of the government.
2
2
3
III. THE PRESENT PROBLEMS OF CHINA’S HIGH-END
EQUIPMENT MANUFACTURING INDUSTRY
2
A.Over-reliance
on investment growth
5
Over
the past few years, China’s equipment
manufacturing industry mainly relied on the extensive
4
development mode, because local governments excessively
pursuited the growth of local economy, meanwhile, all the
5
enterprises
blindly invested and blindly pursued the scale of
enterprises and the expansion of output. Besides, competition
among6 enterprises was anabatic and market economy was in
chaos, which restricted the development of high-end products.
The massive investment of enterprises, also caused
convergence of the local industrial structure, resulted in
environmental pollution, and exacerbated the waste of
resources.
B.Lack of core technology, higher external dependence
China is a large developing country with more than 1.3
billion people. The situation that high-end equipment
manufacturing industry in China is big but not strong has been
restricting the rapid development of China’s economy. The
development of equipment manufacturing industry not only
embodies the level of China's comprehensive national
strength, but also affects China's international status. Along
with the reform and opening-up, China's high-end equipment
manufacturing industry makes some achievements, but some
of the crucial techniques are still firmly mastered in western
countries, so a lot of core parts in manufacturing field
completely depend on imports[5]. Raw materials and low
human capital make China gradually become a worldwide
processing factory, and cause a big gap with world power. The
figures given by Wang Ruixiang, the president of China’s
machinery industry federation ,show that 80% of China's
integrated circuit chip manufacturing equipment, 40% of the
large petrochemical equipment, 70% of the automobile
manufacture key equipment and advanced intensive
agricultural equipment still rely on imports.
The independent R&D ability of China is weak,
innovation ability is poor, even though, the introduction is
always heavy, but the innovation is light, which make China
have a large gap with foreign countries[6]. A lot of enterprises
are lack of funds to invest in R&D, the management
mechanism of research departments is not perfect, the number
of innovation achievements is small, and the quality is low.
The shortages of high quality professional and technical
personnel and management personnel, exceed supply of
common talents demands, and exceed demands of advanced
talents supply, also have a great effect on the innovation
ability of the enterprises.
C.High energy consumption of products, low resource
utilization
China’s traditional development model is energy
consumption, which wastes a lot of resources, at the same time,
there are a lot of defects in the development process. High
energy consumption and low output make China’s high-end
equipment manufacturing industry lack international
competitiveness. After all, the earth 's natural resources are
limited, high pollution and high emission also sound a
warning to us, which is not conducive to the continuous and
stable development for China's economy.
D.Large enterprise groups are not strong
There is a large number and wide distribution of China’s
high-end equipment manufacturing industry, but the situation
that industries are big but not strong, has become bottleneck
for the development of China’s high-end equipment
manufacturing industry[7].On the aspect of R & D capabilities
and independent intellectual property rights, China’s
enterprises still have a large gap with the developed countries.
The amount of China's large enterprises is however large, but
they are lack of systematic management of industrial chain[8].
Therefore, in order to solve the competition between
enterprises, we must improve chain structure of the equipment
manufacturing industry, and enhance the innovation ability of
enterprises.
E.Financing system is not perfect
The financing system of China's high-end equipment
manufacturing industry is not perfect,and the financing
channel is less, so the own funds of enterprises and
government funding can't guarantee long-term capital
requirements for R&D project,which reduce the R&D process
of enterprises to a large extent,increase the gap between
domestic equipment manufacturing industry and foreign
advanced products.
IV.COUNTERMEASURES FOR THE DEVELOPMENT OF
CHINA'S HIGH-END EQUIPMENT MANUFACTURING INDUSTRY
personnel, establish development policy for equipment
manufacturing industry, and promot steady and rapid healthy
development for China's high-end equipment manufacturing
industry.
At the same time, the government should take
appropriate measures to keep the demand of domestic market
for the equipment manufacturing industry, to expand domestic
demand and drive the development of the domestic market
economy. When the cost performances are the same,
government should initiatively lead to purchase domestic
equipment and facilities. For some well-developed enterprises,
government should strengthen the support strength, give
low-interest loans, and promot the development of the
high-end equipment manufacturing industry. For the
enterprises which research and use the first (set) domestic
equipment, government should make corresponding rewards,
and encourage insurance company to do insurance work for
the equipment. In addition, government will cooperate to
supervise equipment manufacturing enterprises to speed up for
the renewal and transformation of enterprise equipments,
make sure that the enterprises have more advanced hardware
facilities.
B.Increasing spending on research, improving self-directed
innovation level
China should increase invests on independent innovation
for the equipment enterprises, set up special development fund
for the independent innovation and demonstration project of
the equipment enterprises,and encourage qualified enterprises
boldly to do technology innovation. In some key equipment
fields, China should combine with local governments to
establish relevant key laboratory, focus on supporting the
development of the equipment manufacturing industry.
The research institutes should establish close cooperation
relations with universities, use personnel in universities and
technical resources, form a combination of research
mechanism, and speed up transformation from scientific
research achievements to products. China can make a whole
set of perfect talent introduction policy and special salary
treatment system to those professional talents who master
high-end core technology, to attract them to join in R&D team
of
the
high-end
equipment
manufacturing
enterprises[9].Meanwhile, we should pay attention to the
cultivation of talents, strengthen cooperation and technology
exchanges between high-end equipment manufacturing
enterprises at home and abroad.
A.Strengthen the government security efforts
C.Promoting the optimization and upgrading of industry
High-end equipment manufacturing industry has an
important effect on China’s technological progress. It is not
only related to the industry's own development, but also
related to the development of China's national economy. The
development level of high-end equipment manufacturing
industry directly influences China's development in various
fields and relates to the country’s economy and national
security. Therefore, Chinese government should give some
preferential policies to equipment manufacturing industry,
increase investment on capital and scientific and technological
China should accelerate the transformation of traditional
industries.On the aspect of clean production and energy
saving,we can widely use new technology, new process, new
material and new equipment to upgrade technology of the
traditional industries, speed up industrial structure adjustment
within enterprises,and encourage enterprises to carry out
merger and reorganization[10]. The traditional mode of
equipment manufacturing industry can not yet adapt to the
requirements of the development for modern economy. With
the development of economic globalization, China gradually
began to join in the world economic competition. To improve
international market position, China must speed up to develop
modern manufacturing services and strategic new industry,and
set up a number of competitive enterprises and famous brand
to make sure that China's equipment manufacturing clusters
have greater impact in the world.
In the cluster distric, gorvenment should pay attention to
cultivate leading enterprises with brand advantage,with large
high-end equipment manufacturing enterprises as the core,
driving the development of small and medium businesses
around. Each small and medium-sized enterprise gives full
play to the collaborative supporting role, consolidates and
extends industry chain, realizes the horizontal and vertical
radiation of industry chain and expands cluster advantages of
the equipment manufacturing enterprises.
background of promoting the northeast old industrial base,
L08WTC016)
[3] Science and Technology Plan Projects of Dalian
(coordination problems research facing big small and
medium-sized enterprises of "two areas and one distribution"
in Dalian, 2009D11ZC107)
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[1]
[2]
D.Perfect the investment and financing system
[3]
China should establish and perfect investment and
financing mechanism, improve the investment and financing
management system, and be clear to the investment direction.
The government should make unified management for the
investment and financing of the equipment manufacturing
industry, formulate unified relevant measures, cast investment
and financing mechanism of the equipment manufacturing
industry into standardized management, and then form a
closely matched organic whole. According to the different use
of investment and financing direction and use scope,
government can reasonablely make optimization and
adjustment to the investment projects. Under the correct
guidance of the government, equipment manufacturing
enterprises shall foster main role in the market economy, in
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macro-control can be used to obtain its own development.
Finally, China can set up a special fund to give key
support to major equipment programs, set up a supervision
committee for special fund use, earmark a fund for its
specified purpose only, and eliminate the waste and idle of
money. Besides, building the risk control mechanism is a good
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follow China’s laws and regulations, formulate perfect risk
control scheme, and strengthen financial risk pre-warning
monitoring. If abnormal condition is found, we should
immediately report to the relevant government to work out
solution measures together.
ACKNOWLEDGMENT
[1] National Soft Science Research Project (Research on the
Development Strategy of Urban Rail Transit Vehicle Industry
Cluster, 2010GXS5D191).
[2] Social Science Fund Project of Liaoning Province
(experiences and enlightenment of Liaoning equipment
manufacturing industry cluster innovation under the
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