Advanced Manufacturing Forum Series: High end Engineering Equipment "Going Abroad"

Li Yizhong, member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference, Deputy Director of the Economic Committee, former Minister of Industry and Information Technology, and President of the China Federation of Industrial Economy, listened to the presentations of several experts and entrepreneurs, and was deeply inspired and inspired by the remarkable achievements of China's engineering equipment manufacturing in "going global" in recent years. I feel that there are several characteristics: firstly, the export of engineering equipment products is steadily increasing. The export product structure tends towards mid to high end, product quality has significantly improved, product series have been formed, and the proportion of complete equipment exports has increased. The outstanding performance of China's engineering machinery and equipment products in the Chilean mining disaster and Japanese tsunami rescue is still vividly remembered today. The second is the rapid growth of overseas mergers and acquisitions by engineering equipment manufacturing enterprises. Especially in response to the international financial crisis, developed countries are facing economic downturn and opportunities for corporate restructuring and adjustment. With a focus on acquiring technology, brands, and talent resources, we actively carry out overseas mergers and acquisitions and asset restructuring in fields such as engineering machinery, rail transit, energy equipment, and precision machinery manufacturing, and have strengthened and improved ourselves. Thirdly, relying on engineering projects has driven the upgrading and replacement of high-end engineering equipment. Whether it is engineering project contracting, labor cooperation projects, or investment in new construction projects, they not only showcase the quality and performance of China's engineering equipment, but also create first-class equipment manufacturing enterprises and create Chinese brands. The above achievements and measures have enabled China's equipment manufacturing industry, especially the engineering equipment manufacturing industry including high-speed rail equipment, construction machinery, power grid equipment, oil and gas exploration and development processing equipment, to create a new situation and climb to a new level in mastering core and key technologies, using foreign brands to create independent brands, and laying out global markets to build overseas industrial chains. While fully evaluating the results, everyone also raised the existing gaps and problems from different perspectives. Gradually alleviating these deficiencies requires joint efforts from both the enterprise and government levels. At the industry and enterprise levels, it is recommended to do several targeted things well: in terms of manufacturing process technology, although our overall assembly level and performance have competitive advantages, some common key technologies, core components, components and the development level of the host are still lagging behind. Many still need to be imported and require in-depth research and development. For example, hydraulic, electronic, and variable speed components in engineering machinery, bearings and electronic control system software and hardware in high-speed locomotives, main pumps and digital instrument and control equipment in nuclear power plants, and core components such as drill bits and packers in deep-sea drilling equipment have higher technical content. Manufacturing processes and material selection still need to organize industry common technical breakthroughs to further improve self-sufficiency. In terms of intelligence, digitization, networking, and flexibility of manufacturing lines, it is necessary to further integrate and apply new generation information technology to improve manufacturing efficiency and accuracy. Therefore, it is necessary to pay more attention to the development of key basic components and improve the innovative manufacturing capabilities of basic components, basic materials, and basic manufacturing processes. Utilize big data systems and simulation technology to improve the level and capability of research and design. In terms of improving the service capabilities of the manufacturing industry, there are still significant shortcomings in the engineering equipment manufacturing industry. We need to extend downstream and provide after-sales service, value-added service, professional service, and full life cycle service around the leading products, enhancing the credibility and sense of security of users. Increase overseas marketing service outlets, establish a cross-border service system, utilize the Internet and the Internet of Things, provide product application combination solutions, provide equipment operation technology services, carry out testing and inspection, maintenance and repair, and ensure timely supply of spare parts. Simultaneously expanding upstream, further assisting or providing technical and commercial services such as research and development, design, consulting, information, energy conservation and environmental protection, as well as leasing. Implement the strategy of service-oriented manufacturing to overseas businesses. Exploring open R&D and manufacturing methods, combining industry, academia, research, and application, and absorbing user participation in the entire process of R&D, design, manufacturing, and marketing, not only brings local market information and user experience, but also develops new models such as "personal customization" and "crowdsourcing design", which is greatly beneficial for improving product quality and performance, promoting and applying new products, and expanding market share. In terms of product innovation and brand creation, enterprises cannot be satisfied with their existing product and service brands. More importantly, they need to have the quality and ability to innovate and create excellence, constantly innovate and upgrade, in order to maintain longevity and vitality. This requires attention to forward-looking technological research and development, increasing the intensity of enterprise research and development investment, gradually approaching or reaching the level of international peers. While acquiring advanced technology and high-end talents from foreign counterparts, more attention should be paid to the cultivation and development of the enterprise's industry technology center and R&D team. A three-level R&D system of "production generation, R&D generation, and reserve generation" should be constructed to maintain technological leadership advantages. An important task here is to improve technical standards and strive to upgrade more to international standards. In the process of "going global", we will increase the systematization of existing domestic standards, gain user recognition, expand international influence, and minimize the difficulties caused by standard conversion and certification. At the same time, we will strengthen cooperation with foreign multinational corporations, actively participate in the formulation of international standards, and enhance our voice in the international standard system. The 4GTD-LTE standard for China's communication industry was recognized by the International Telecommunication Union three years ago as one of the international standards, greatly promoting the internationalization of China's 4G technology and equipment. Currently, 42 4G networks have been established in 26 countries around the world. At the level of the government and relevant departments, it is necessary to create favorable external conditions and environment for high-end engineering equipment to go global. The government should not interfere with the decision-making autonomy of enterprise projects and play a guiding and safeguarding role in strategic planning, financing support, investment protection, and other aspects. Everyone generally reflects that firstly, the national level should formulate strategic plans and top-level designs for "going out". China has entered a stage of capital export development, developing an open economy. In the context of global investment and trade, it is crucial to formulate strategic plans and even specialized plans for different industries. It includes development orientation, industry choice, location choice, investment orientation, cooperation mode, etc. When preparing the 13th Five Year Plan, "going out" should be an important content, and the strategic thinking of opening up such as the "the Belt and Road" and APEC should be embodied. The second is to establish a sound legal system to guide enterprises to act in accordance with the law and avoid risks. Suggest revising the Foreign Trade Law, formulating the Overseas Investment Law and the Labor Export Law, regulating the behavior of "going global" investment and joint venture cooperation, and protecting the legitimate rights and interests of Chinese enterprises. Support the establishment of legal, financial, business and other service intermediaries, providing legal, information, financing, insurance, intellectual property and certification services. The third is to strengthen and improve financial support for "going global" enterprises. Enterprises have reported that domestic bank loans have high interest rates and fewer branches in foreign countries, making it difficult and costly for them to obtain loans. Recently, the country announced that it will allocate $50 billion to support the APEC Infrastructure Investment Bank and $40 billion to support the development of the Silk Road. Enterprises are encouraged and hope to accelerate their implementation. Suggest supporting the Export Import Bank and Development Bank to expand credit, reduce interest rates, and better leverage the role of policy banks to support "going global". Fourthly, it is recommended that the government strengthen guidance on enterprises going global. It is difficult for enterprises to make accurate judgments on deep-seated issues such as the political situation, economic operation direction, social stability, and investment environment of the country where "going global" is located. In the event of unexpected events, conflicts, disputes, or friction with the host country, the government needs to assist in facilitating negotiations. Strengthen bilateral and multilateral investment and trade agreement negotiations, actively participate in the formulation of international trade rules, and create better external conditions for enterprises to go global. In addition, it is suggested to further study the term and connotation of "high-end engineering equipment", and it should be changed to "high-end equipment" for more accuracy and clarity.