In 2005, China's machinery industry production grew steadily, and economic efficiency maintained a steady growth. The total industrial output value of the machinery industry was 4.14 trillion yuan, a year-on-year increase of 21.6 percent, an increase of 5 percentage points, accounting for 17 percent of the country's total industrial output value. The National Development and Reform Commission predicts that the machinery industry will maintain its momentum of rapid development in 2006, and the increase in total output value will remain between 15% and 18%.
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An expert from the National Development and Reform Commission pointed out that there are still some outstanding problems in China's machinery industry, mainly reflected in the fact that power generation equipment production and ordering are too concentrated. The over-concentration of power generation equipment is not conducive to a balanced production arrangement in the machinery industry. As orders for power generation equipment signed in the following two years have decreased significantly, it is expected that production capacity may be partially emptied in 2008; the machinery industry risks overcapacity. At present, there are signs that the oversupply of the machinery industry is becoming more and more serious. The main manifestations are: product convergence, decentralized supply of resources, and vicious competition in the market; the export of mechanical and electrical products has increased rapidly in the short term, and trade disputes have increased. In 2005, the export volume of large-scale mechanical products such as electric motors and manual vans surged, and they frequently incurred anti-dumping in importing countries, causing hidden troubles in the steady growth of foreign trade exports.
The National Development and Reform Commission pointed out that the factors favoring the development of the machinery industry in 2006 mainly reflected in the following aspects:
First, there are sufficient contract orders. The enterprises that produced major equipment such as power transmission and transformation equipment, metallurgical and mining equipment, and petrochemical equipment were more adequate in contract orders in 2006, and the output value and output of the main varieties will be higher than in 2005. Sufficient host manufacturing tasks will drive the production of auxiliary engines and related parts and components, which will play a decisive role in maintaining stable development of the entire industry.
The second is the emergence of new hot spots in the demand for mechanical products. With the implementation of various preferential policies for agriculture, farmers' enthusiasm for purchasing agricultural machinery will be increased, which will effectively promote the sustainable development of agricultural machinery. At the same time, the vigorous development of digital manufacturing technology will drive the development of the machine tool industry.
Third, external production conditions such as energy tend to improve. Coal and electricity supply tend to be relaxed, providing good conditions for the production of machinery. However, large-scale generator sets, large-scale power transformers, large-scale metallurgical and mining equipment, petroleum and petrochemical equipment, and other major equipment have exceeded the limit of transport tasks in previous years. There are fewer special large-size railway vehicles, and the turnover is difficult, and the situation of transportation shortages is further aggravated.
Fourth, the tight supply of major raw materials has eased. Normal steel supply is basically eased, and there will not be large fluctuations in prices. Alloy steel, electrical steel, copper and aluminum and other non-ferrous metals, alloy furnace supplies relatively tight supply, the price will remain high. There will be no obvious drop in chemical product prices. The fluctuation of raw material prices continues to have a significant impact on the profitability of the machinery industry.
Fifth, the export of mechanical products continued to grow. The international market demand for large-scale products such as automobiles, agricultural machinery and construction machinery has become a new growth point for the export of mechanical products.
In order to solve the outstanding problems in the machinery industry and maintain the rapid development momentum of the machinery industry, the National Development and Reform Commission has put forward specific policy recommendations: First, balance the production schedule and promote the steady growth of the machinery industry. The output value of the electrical appliance industry accounts for 1/4 of the entire industry, and it is highly correlated with the sub-sectors. During the “Eleventh Five-Year Plan†for power generation and power transmission and transformation projects, it is proposed to consider the stable, continuous and rapid development needs of the electrical and electronic appliances industry and properly control the rhythm of the distribution of project construction in various years. Second, strengthen the adjustment of economic operations to ensure the smooth implementation of key projects of mechanical and electrical equipment projects. When critical raw materials for major equipment such as power generation, power transmission and transformation become critically scarce, and prices increase substantially, seriously affecting the production and manufacturing of key equipment of national key enterprises, it is recommended to further strengthen economic operation adjustment and take necessary measures to ensure key equipment for key projects. The project was successfully implemented. Third, to further give play to the coordination role of trade associations in foreign trade and export, and maintain the export order of foreign trade. Through information guidance and coordination, enterprises are encouraged to grasp the export rhythm, actively establish a stable export channel and strengthen after-sales service measures, take the initiative to do a good job of preventing anti-dumping measures so as to minimize losses. 