China's machinery industry is facing a decline in profits, overcapacity, and increased operating difficulty "three doors." On February 13, at the press conference held by China Federation of Machinery Industry, Executive Vice President Cai Weici stated that the restructuring of the machinery industry has reached a critical juncture. "Compared with the rapid growth for 10 consecutive years, the growth rate of the major economic indicators of the industry has declined in full, and in particular, the growth rate of profits has accelerated, highlighting the urgency of upgrading the industry structure."

Cai Weici focused on analyzing the problems and difficulties faced by the machinery industry. First, profits fell faster than production and sales, and profit margins fell. In 2011, the production and sales growth rate of the machinery industry and the growth rate of profits all showed a downward trend. In addition, the first time in recent years, the profit growth rate was lower than that of production and sales. The second is weak market demand, highlighting excess capacity. Since 2011, the market demand for machinery products has shown a weak trend. The year-on-year growth rate of finished product inventory is basically at a high of about 20%, much higher than the level of about 10% in the previous two years. At the same time, the survey of key enterprises in the machinery industry shows that the year-on-year increase in accumulated orders has dropped to about 6%, which is significantly lower than the level of more than 30% in the same period of last year. Inadequate ordering has further aggravated the contradiction of overcapacity. Due to oversupply, the annual price index of machinery products showed a downward trend. Third, the cost of funds used increased, making it more difficult to operate. In 2011, with the adjustment of monetary policy and the tightening of liquidity in the capital market, the demand for liquidity by companies exceeded the supply capacity of the market, resulting in the difficulty of recovering funds and rising financing costs.

Cai Weici said that the deterioration of the efficiency situation and the difficulty of operating have shown that the industrial structure of the machinery industry cannot adapt to changes in demand. Although some progress has been made in structural adjustments in the past year, compared with the more drastic changes in the current demand market, the momentum of this progress is still not large enough and not fast enough. Cai Weici analyzed the foreign trade situation of the machinery industry as an example. In 2011, the trade deficits between China's machinery industry and Germany, Japan, and other equipment manufacturing powers were as high as 57.8 billion U.S. dollars and 49.2 billion U.S. dollars, respectively, which showed China’s high-end equipment and advanced world in a concentrated way. The huge gap in levels. Although China’s machinery industry’s foreign trade achieved a surplus of approximately US$12.4 billion in 2011, the surplus mainly comes from the processing trade at the low end of the industrial chain, and in the “general trade” that can better reflect the level of competitiveness of the actual industry, it is The huge deficit of 222 billion U.S. dollars. For the machine tool machine tool industry with far-reaching impact on the equipment manufacturing industry, the trade deficit in 2011 was as high as 13.4 billion U.S. dollars. The average unit price of China's imported CNC machine tools is US$21.92 million per unit, while the average export unit price is only US$33,400 per unit. In addition, the proportion of China's self-owned brand cars in the total output of automobiles declined in 2011, which also reflects the need to improve the industry's ability to independently innovate.

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