China's mechanical infrastructure industry presents several major weaknesses

As China has a relatively late understanding of the importance of mechanical parts in the machinery industry, it lacks investment for a long time, resulting in a poor foundation, weak foundation, and weak strength. In particular, with the increase in the level of host computers in China, bottlenecks in mechanical components lagging behind those of the host have become increasingly apparent. In recent years, although the state has given certain support in the aspects of technology introduction, technological transformation, and scientific research and development, compared with the current market demand and foreign standards, there is still a small gap, which is manifested in the following: Quality is unstable, early failure rate is high, and reliability is poor.

China's mechanical base products have fewer varieties and specifications, especially high-end products, and they do not meet the growing needs of the host. At present, the performance indicators of various types of mainframe components are roughly equal to those of foreign countries in the 1980s. The unstable quality, early failure rate, and poor reliability are the fatal weaknesses of the basic parts. Therefore, in order to improve the market competitiveness of their mainframes, many OEMs often choose to import basic components, resulting in domestic-based components, especially products with lower technological content, and the domestic market share has declined. Although there are obvious advantages in the export of China's basic parts products, they are mainly labor-intensive products with large quantities, low value, and low technology added value.

At present, China's mechanical basic parts industry has the following major problems:

The first is that the repeated construction is serious, the degree of specialization is low, the scale is not enough, and the economic efficiency is poor.

Compared with the host computer, the basic investment required for the company to establish the initial capital and technology is relatively small, so during the period of several major economic developments in the country, a number of basic parts manufacturing enterprises have been added, and there have been a large number of low levels. The repeated construction, with many points and small batches, will not be economic scale. Although the basic parts enterprises gradually become independent from the main plant, most of the enterprises themselves are large and complete, small and complete, and have low levels of specialization, low level of equipment, unstable quality, and low economic efficiency. For example, the total annual bearing capacity of the three large-scale backbone enterprises in China's bearing industry is less than 50% of that of a famous foreign company. In the past two years, nearly 100 hydraulic parts plants have been built in China, but only a few of them have an annual output of more than 300,000. The main products are for agricultural machinery. The Rexroth company in Germany produces 1.3 million pieces of various hydraulic products each year, and Japan Yau Institute also produces more than 600,000 pieces per year. The per capita output value of mold enterprises in industrialized countries is about 150,000 to 200,000 U.S. dollars. China only has 40,000 to 50,000 yuan. In recent years, with the implementation of multiple ownership development policies, the basic parts industry is undergoing an intensive and intensive development process.

Second, weak scientific research and development, insufficient capital investment, and slow technological progress

The basic components industries introduced a number of foreign advanced technologies early in the late 1970s and early 1980s, but lacked sufficient software and hardware inputs for digestion and absorption. According to foreign experience, the ratio of imported technology and the funds needed for digestion and absorption is about 1:7, and China’s understanding of this is relatively late, and digestion and absorption are slow. Market competition is actually a contest of technical strength. Foreign countries attach great importance to this and have increased investment to occupy the commanding heights of technology. The funds used by major famous companies for scientific research and development account for 4% to 5% of their sales, and the key areas are 10%. Although many universities and colleges in China are currently engaged in scientific research, many theoretical studies, scientific research achievements, and patent papers have a fairly high level. However, the actual combination with production does not matter, especially the speed of conversion into commodities.

Third, the backwardness of raw materials and related technologies and the low level of technology and equipment have restricted the development of basic parts.

The quality of the steel used in fasteners, chains, springs, bearings, and molds is poor, and the variety and specification of the steel are directly affected. The quality of the basic part products is directly affected, and the hydraulic control parts and the electronic control technology related to the quality of the hydraulic parts are behind. Also directly affects the quality and reliability of hydraulic components. The mechanical basic parts are generally mass-produced, mass-produced, and also have a variety of products that require high processing precision. Therefore, the production process and its equipment require high investment. In many foreign countries, high-efficiency and high-precision special planes, production lines or flexible lines are used to achieve efficient and automated production. However, some basic parts enterprises in China are restricted by funds, their input is not strong, the ability of enterprises to self-reform is poor, and there are few advanced equipments and they are not matched, which affects the quality of the products.

Comprehensive analysis, the main cause of the above problems lies in:

1. Weak corporate foundation

Due to the poor foundation of China's mechanical basic parts industry, weak foundation, low investment in science and technology, and weak development power, it can not meet the needs of the host industry in terms of introduction, joint venture, cooperation, and rapid development, resulting in a decline in the market share of the mechanical base parts in the domestic market.

2. The country lacks strong policy support for the mechanical parts industry

Although the country has clearly defined important industrial machinery components (molds, bearings, hydraulics, pneumatics, seals, etc.) in terms of industrial policies, it lacks the support of corresponding supporting policies, such as excessive burden on the mold industry, enjoying value-added. There are only a few hundred companies in the country that have returned part of the tax. The face is too narrow and their role is limited. They also need to continue to support policies.

Therefore, in order to improve the market competitiveness of China's mechanical basic parts products and better meet the demand of China's machinery industry for supporting domestically-made basic parts, it is expected that China's basic parts industry will face further adjustments to integrate superior resources and eliminate backward companies. In the next 5 to 10 years, the industry will strive to make greater progress and breakthrough in the development of branded products and brand-name companies, technological innovation, enhancement of domestic and foreign market competitiveness, and strengthening of intensive management.

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