China's machinery industry needs to speed up transformation and upgrading

Xinhua Beijing, July 22 (Xinhua) China Machinery Industry Federation executive vice president of the Cai Wei-Tze 22, said the first half of China's machinery industry achieved major economic indicators of steady growth, but the industry also faces many difficulties and problems. In order to maintain the sustained and healthy development of the industry, the industry must speed up structural adjustment and the pace of transformation and upgrading.

It is understood that in the first half of China's machinery industry achieved steady sales growth, sector grew by 16.2%, higher than the national industrial growth rate 1.9 percentage points increase compared with a year earlier but fell sharply. From the accounting perspective, this year the country's total industrial added value of industrial machinery the proportion of the monthly increase, from 18.33% in January-February increase of 18.74% from January to June, has topped the list.

At the same time, the first half of the machinery industry is also facing some problems. Costs and expenses rose rapidly, especially in finance charges and interest and rapid growth year on year monthly growth rate has accelerated the trend; past two years, imports of machinery industry growth has been higher than export growth, the first half of Machinery Industry Foreign Trade has been going on deficit, according to current trends, is expected to be in the machinery industry to reproduce the first time in six years after the annual foreign trade deficit.

Reporters also learned that companies ordering a marked decline in growth rate and substantial growth in inventories of finished products, this analysis, the future machinery sales situation more difficult. At present, various elements of cost hikes, mechanical products in the growing operation under the pressure of oversupply difficult. On the one hand because of market demand growth slowed, leading to duplication on the other hand a lot of excessive expansion of production capacity, resulting in vicious market competition, product prices fell, many companies declining profit margins.

"In the 'policy shift' and 'cooling demand' double pressure, the mechanical industry must accelerate the transformation and upgrading." Cai Wei-Tze said, originated in the financial crisis of the "growth" as the main orientation of the policy orientation has changed to "five-second "to" to upgrade "as the main orientation of the policy orientation. Closely related is the policy of expansion brought about the first two years of rapid growth in demand has cooled. Against this background, the machinery business in the future more attention must be to enhance independent innovation and core competitiveness to cope with increasingly tough market challenges.

"To focus on cultivating support machinery industry to grow stronger in soft power." Cai Wei Chi told reporters, machinery industry to grow stronger, not only requires capital investment in hardware terms, but also need the support of soft power. Soft power refers not only technical skills, but also quality assurance capabilities. To this end, the industry key enterprises not only to foster "high-end attack, ram-based" technical capabilities, but also to foster the quality of full awareness and meticulous execution process requirements; to the persistent efforts to build "China" quality brand image.

Meanwhile, enterprises should increase the "going out" the pace of efforts to expand exports to alleviate the problem of insufficient domestic orders. Especially for the automotive, power transmission equipment, heavy-duty machine tools, engineering machinery, capacity expansion and excessive growth of domestic demand-supply industry downturn, should increase international market development efforts.

"We must enhance the sense of urgency. Must not be rapid development in recent years, blind optimism, we must clearly see the real tests and challenges are coming." Cai Wei Tzu said that the current competitive market, Ebb Tide in the enterprises must strengthen the independent innovation to build the core competitiveness.