Manufacturing China: High-End Equipment will be Important

Author / Editor: Zhang Mengjie, 21st Century Macro-visual Research Institute / Lisa Saller, Lisa Saller

The drafted outline of “The 13th Five-Year Plan” puts forward that in order to realize the powerful manufacturing country strategy in the next five years, China will carry out a high-end equipment innovation and development project, including eight industries such as aerospace equipment etc.

Haier Intelligent Manufacturing Mode
Haier Intelligent Manufacturing Mode
( Haier)

Besides the long-term positive policy, with the transformation and upgrading of manufacturing industry and propulsion of localization replacement, the domestic and international market’s demand of high-end equipment manufacturing is quite large. As the “National team” in manufacturing industry, equipment manufacturing – especially the high-end equipment manufacturing – will embrace another five-year strategy opportunity period.

In the first four years of “The 12th Five-Year Plan”, the added value of Chinese equipment manufacturing industry rose by an annual average of 13.2% in real terms, 2.7% faster than the added value of industries above a designated scale. Up to 2015, the proportion of the equipment manufacturing industry in the added value of industries above a designated scale is 31.8%, 3.8% higher than that in 2008. The prime operating revenue of the entire industry is over 30 trillion Yuan, ranking first all over the world in five consecutive years.


Why choose the eight industries?

According to requirements of The 12th Five-Year Development Plan of High-End Equipment Manufacturing Industry in the last five years, the Chinese high-end equipment manufacturing focuses on the five directions aeronautic equipment, satellite and application, rail transit equipment, ocean engineering equipment and intelligent manufacturing equipment etc. But “The 13th Five-Year Plan” puts the standing point of the powerful manufacturing country on the eight high-end equipment manufacturing industries.

The eight industries respectively are: aviation and aerospace equipment, ocean engineering equipment and high tech shipping, advanced rail transit equipment, high-end CNC machines, robot equipment, modern agricultural equipment, high performance medical equipment and advanced chemical complete equipment.

The eight key industries can be actually traced to the same origin of “High-end equipment innovation project” clarified in Made in China 2025. As the action platform of Made in China from large to strong in the next 10 years, Made in China 2025 lists 10 key areas concerning high-end equipment manufacturing, including: large aircraft, aero-engine and gas turbine, civil space, intelligent and green train, energy-efficient and new energy vehicle, ocean engineering equipment and high tech shipping, smart power network complete equipment, high-end CNC machine, nuclear power equipment and high-end diagnostic equipment.

Broad market is hidden in localization replacement

It is predicted that, in 2020, the proportion of the sales revenue of Chinese high-end equipment manufacturing industry in the equipment manufacturing industry will be increased to 25%, reaching 16.55 trillion Yuan. The industrial added value rate increases by 2% compared with that at the end of “The 12th Five-Year Plan”. It will become the pillar industry of national economy in the next five years (See diagram in Picture Gallery).