At the beginning of February, the Executive meeting of The State Council deliberated and adopted the equipment manufacturing industry adjustment and revitalization plan in principle. The plan clearly points out that the equipment manufacturing industry will be revitalized at a faster pace, relying on key national construction projects, and major technological equipment will be independently developed on a large scale.

Establishing domestic first (set) equipment risk compensation mechanism, support equipment manufacturing backbone enterprises of the restructuring, the development of engineering general contracting, system integration, international trade and financing ability of large enterprise groups, will be conducive to improve the construction machinery industry enterprise quantity, small scale and the phenomenon of redundant construction, disorderly competition, improve the competitiveness of China's industry, We will promote China's transformation from a major equipment manufacturer to a powerful one.

"Under the current background, China's equipment manufacturing industry is facing a good opportunity for industrial integration, and the policy arrangement made by the state recently is a golden opportunity for the equipment manufacturing industry." Xiang Wenbo, president of Sany Heavy Industry, was excited by the adjustment and revitalization plan of the equipment manufacturing industry reviewed at the Executive meeting of The State Council and passed in principle.

At the beginning of February, the Executive meeting of The State Council deliberated and adopted the equipment manufacturing industry adjustment and revitalization plan in principle. The plan clearly points out that the equipment manufacturing industry will be revitalized at a faster pace, relying on key national construction projects, and major technological equipment will be independently developed on a large scale.

Xiang wenbo believes that the plan contains a lot of fiscal and financial policies conducive to the development of China's equipment enterprises, such as encouraging enterprises to improve the starting point of technological transformation, increasing export tax rebate rate, and increasing support for equipment manufacturing enterprises financing. These policies and measures are conducive to the improvement of the overall competitive strength of enterprises.

Industry insiders generally believe that from the content of the plan, we can see that the country's determination and action to revitalize the equipment manufacturing industry is strengthening, and we hope to issue specific implementation rules as soon as possible.

Take advantage of the situation to promote equipment independence

Reporters saw that the plan has a lot of support for enterprise technological innovation, such as supporting enterprises to strengthen independent innovation, the establishment of major equipment, scientific research projects, large-scale launch of major technological equipment independent work, these policies and measures are encouraged by the industry.

Ren Qinxin, general manager of CITIC Heavy Industrial Machinery Co., LTD., said the country has formulated a new approval mechanism in response to the global financial crisis, proposed to encourage industrial restructuring and encourage priority in the use of domestic equipment in key areas and major projects, these policies and measures are conducive to the product upgrading of China's equipment manufacturers.　

Honorary President of the China electrotechnical society Zhou Heliang thinks, the equipment manufacturing industry to adjust the revitalization planning to a certain extent, overcome the negative influence of the global financial crisis, enhance independent innovation capability of equipment manufacturing industry in our country, promoting the optimization and upgrading of industrial structure in China, to promote our country implemented by the equipment manufacturer to equipment manufacturing powerhouse.

Equipment independence is the biggest bright spot in the planning. Industry insiders said that due to the confusion of "autonomy" and "localization", China's equipment manufacturing industry in recent years to "market for technology", introduced a lot of foreign enterprises, but did not obtain the core technology. As the government attaches importance to and supports the independent innovation of enterprises, some industries, including power generation equipment, have made great achievements, and the technology of local products has approached the international level, and the degree of independence is constantly improving. However, in other fields, especially high-end CNC machine tools and other fields, still lag behind the international level, international dependence is higher, is not conducive to China's economic development and economic security. Therefore, it is of great significance to develop equipment autonomy

Song Xiaogang, deputy secretary general of China Machinery Industry Federation, said that the equipment manufacturing industry is a strategic industry to provide technical equipment for all sectors of the national economy, and the independence of equipment is not only related to the development of the equipment manufacturing industry itself, but also related to the security of the national economy.

"The equipment manufacturing industry is the upstream industry of the national economy, and the demand of related industries is related to the prosperity and revitalization of the equipment manufacturing industry. At present, due to the influence of the development of steel, automobile and other industries, the equipment manufacturing industry has also been greatly impacted. This plan proposed to combine the key projects of big industries, promote the independence of equipment, will further enhance the independent innovation ability of China's equipment manufacturing industry, enhance the core competitiveness of enterprises, accelerate the revitalization of China's equipment manufacturing industry." Wu Shengfu, general manager of China Heavy Group, said

Wu Shengfu said that the plan proposed the direction of equipment autonomy, more firm confidence in the sustainable development of China heavy Group. "The group has adjusted its product mix in response to changes in the market. It is believed that under the support of the national policy of supporting equipment manufacturing enterprises' technological transformation and risk compensation for the first domestic equipment (set), China No.1 Heavy Industries Co., Ltd. will further accelerate the pace of technological transformation and innovation, undertake important tasks in key projects of large industries, and expand the domestic and foreign markets."

The new mechanism has been gaining ground for a long time

At present, the two common problems facing equipment manufacturing enterprises are to speed up industrial and product upgrading and to solve the situation of long-term dependence on import and control of key and core components as soon as possible.

"The content of the equipment manufacturing industry adjust the revitalization of the planning is very targeted, such as ascension based component technology, establishing domestic first (set) equipment risk compensation mechanism as well as to the actual need to import key components and raw materials shall be exempted from import duties and VAT are industry enterprises have been suggested before, the finally accepted by policy makers." Li Xiaoyu, minister of equipment manufacturing department of China Machinery Industry Group, fully affirmed the content of the plan.

Zheng Jianhua, vice president of Shanghai Electric (Group) Corporation, said: "At present, the most important problem of equipment manufacturing industry localization is not to tackle scientific and technological problems, but to cultivate the market. One of the most encouraging aspects of the plan is the establishment of a risk compensation mechanism for the use of the first domestic equipment."

Experts believe that the importance of planning to encourage key projects to use indigenous products lies in the fact that some domestic enterprises already have the ability to produce and manufacture large-scale equipment, but have no opportunity to participate, while many project managers tend to choose imported products because they value the strength of international giants.

"From this point of view, the plan proposes to establish a risk compensation mechanism for the use of the first domestically produced equipment." Dong Yaguang, chief machinery analyst at Sinolink Securities, said that although there is still a big gap between domestic and foreign counterparts in some areas of major technology and equipment, the gap isn't fatal. The implementation of the risk compensation mechanism for the first equipment provides opportunities for domestic equipment to participate in major projects, and will promote the continuous progress of domestic equipment in practical application, so as to enter a virtuous cycle.

In recent years, Shanghai Electric Power Station Group has made a great breakthrough by investing a huge amount of money in the development of 600,000 double-water internal cooled turbogenerators and low-pressure welded rotors of nuclear power turbines. Yuan Jianhua, chief engineer of the group, said: "What we are most worried about is that we have technology and no market. The plan proposes to compensate enterprises using the first domestic equipment for risks, which solves our worries and looks forward to the release of relevant details."

Zeng Guang 'an, president of Liugong Co., LTD., believes that it is of great practical significance to establish a risk compensation mechanism for the use of the first domestic equipment and increase the export credit line. In addition, supporting the joint restructuring of key equipment manufacturing enterprises and developing large enterprise groups with engineering general contracting, system integration, international trade and financing capabilities will help improve the phenomenon of large number of enterprises in the construction machinery industry, small scale, repetitive construction and disorderly competition. In addition, to accelerate the improvement of product standard system planning, in the global competition for the right to speak has great strategic significance

Hope for more detailed policies

However, the revitalization plan is still relatively broad, and companies and industry experts said they expected further concrete measures.

"We hope to further standardize the national policy on imported equipment, so that Chinese enterprises can enjoy equal status with foreign-funded enterprises in the domestic market." Xiang wenbo said that in terms of the import of foreign parts and components, the import of parts and components that have been able to produce in China should be abolished duty-free, and the import duty-free of parts and components that cannot be produced in China but are in demand for the main engine should be reduced according to different situations to reduce the burden of enterprises, but also to provide buffer time for enterprises in terms of technological innovation. The saved funds can be invested in the development of new products and the construction of independent innovation capacity

But industry experts generally believe that after the introduction of the plan for host enterprises to apply for import parts duty-free should be more stringent. In terms of RESEARCH and development, government departments can provide financial support or preferential policies such as interest reduction loans to basic parts technology research, or relevant departments can cooperate with universities and other scientific research forces to focus on breakthroughs in the development of middle and high-end hydraulic components, bearings, engines and other problems. In addition, host enterprises can form long-term strategic partnership with accessory enterprises, and host enterprise groups will invest capital and technical support to basic parts enterprises to enhance the production capacity of supporting enterprises; At the same time, policy guidance, support, through asset restructuring or mergers and acquisitions to establish several large basic parts and components enterprise groups, enhance the market development and research and development capabilities of parts and components production enterprises.

Song Qun, secretary general of the Academic committee of the National Development and Reform Commission, said that the plan is only a directional and guiding policy, and whether it can promote industrial development depends on its implementation and implementation. To this end, she asked, what are the key projects? How to define key projects and key projects? This may have a lot to do with subsequent investment and policy implementation. In addition, what is the percentage of the major projects proposed in the plan that are made in China? Which key links need to be 100% local and which need to be 80%? These all need to be defined according to the specific situation.

Feng Baoshan, deputy director of the planning and Marketing Department of the China Machinery Industry Federation, suggested authorities should use policy support more to boost domestic demand rather than expand imports. At the same time, certain funds will be used to introduce foreign key technologies and acquire foreign enterprises with core technologies. In addition, it is necessary to increase r&d investment in industry generic technology and build basic technology r&d platform. For key technologies that enterprises care about but cannot accomplish independently, the government should coordinate and solve them to avoid redundant construction. In tax policy, the incentive mechanism of combining tax rebate for domestic sales with tax rebate for export should be established. While further raising export tax rebate, encourage enterprises to pay more attention to the domestic market by tax rebate for domestic sales.

Under the impact of the global financial crisis, compared with large enterprises, many small and medium-sized enterprises are more flexible in responding to the crisis. They can reduce production or suspend production at any time. Although some enterprises are small in size, they have higher environmental protection level, and their role in economic recovery cannot be underestimated. Therefore, some experts put forward that we should strengthen industry access, change the original model of heroes based on the size of enterprises, strengthen the constraints of environmental protection indicators for new projects, so that excellent small and medium-sized enterprises get more policy support. (reprinted by China International Die & Mould Network)