Luan Ping: The development of key industries requires national coordination

Luan Ping: The development of key industries requires national coordination

The global financial crisis has caused China's equipment manufacturing industry to face unprecedented challenges.

"I know that to interview me this time, you just want to hear the voice of the enterprise and want to know what kind of views this plan will have as a direct influence on the plan." A meeting, NPC deputy, Guangxi Yu Chi Ping, the chairman of the board of Chai Machinery Group Corporation, guessed what the journalist wanted and his subsequent conversation was open and honest.

The strategic significance of national co-ordination

"In our country's industrial system, equipment manufacturing industry can be said to be one of the most representative, most basic, and also the industry with the most intense competition with the international industry." Fuping used the "three most" to adjust The strategic position of the equipment manufacturing industry highlighted in the revitalization plan was explained.

The plan emphasizes that the equipment manufacturing industry is a strategic industry that provides technical equipment for all sectors of the national economy. It has a high degree of correlation, attracts strong employability, and is intensive in technology. It is an important guarantee for industrial upgrading and technological advancement, and a comprehensive reflection of the country’s overall strength. .

Fuping analyzed the in-depth background of the plan:

On the one hand, since the reform and opening up, especially after major adjustments to the industrial management system in previous years in China, from the time of decentralized enterprises, the implementation of the corporate board of directors and board of supervisors, and the improvement of governance structures, the dominant position of enterprises has become increasingly perfect and business operations have improved. It is full of vitality, flexibility is greatly increased, and market opportunities can be seized in time.

"But for our country with relatively backward industrial technology, on the other hand, it weakens the country's resources in the national industry-especially the equipment industry." Fuping believes that equipment manufacturing is the basis of China's national industry. Industry, to catch up with the world, to achieve the interception of foreign products abroad, to improve the industry's core competitiveness must be coordinated national planning.

"By relying on one or two enterprises, the first is not financial resources, and the second organization is not so much technical power, because a single enterprise can only achieve breakthroughs in individual aspects at most, and one criterion for judgement of an international equipment manufacturing country is to have a complete Manufacturing system."

According to his predictions, through the adjustment of the revitalization plan, the future development of the entire industry will be reorganized at the national level, and the country’s manpower, financial resources, and other related resources will be integrated over time, enabling the entire industry to be competitive in the next three to five years. Gradually approaching the level of internationalization. "Therefore, the person in charge of the company, like me, feels relieved to see such a plan coming out."

Efforts to create core competitiveness

Junping pointed out that after the outbreak of the financial crisis, China’s exports suffered winter, to a large extent because of the lack of core competitiveness of many of China’s export products.

So what is considered to be the core competitiveness? Fuping pointed out that the core technology of the automotive industry is the engine, and the core technology of the engine is the injection system. At present, this technology is mainly monopolized by four global companies such as Bosch and Siemens. As long as it is an oil injection system used in automobiles, it is basically produced by them. "They occupy more than 80% of the world's market share, and we must know that the price of this system accounts for 1/3 of the total cost of an engine, and it is also the most profitable part. This is the core technology."

Although Fuping’s viewpoint is also consistently advocated by many people, we have gone through some detours about how to obtain core competitiveness. In recent years, with the Chinese government’s attention and support for independent innovation of enterprises, China’s equipment manufacturing industry has seen gratifying changes in the autonomy of major equipment. However, in most fields, especially high-end CNC machine tools, it still lags behind international standards. The high degree of international dependence is subject to foreign companies and is not conducive to China's economic development and economic security. Therefore, it is of great significance to vigorously develop equipment autonomy.

The Guangxi Yuchai, which has always attached importance to independent research and development of its core technologies, was able to buck the trend when many companies faced a shrinking market. “Our company's daily engine production standard is 1,500 units, and now we can produce 2,200 units a day, and orders are continuing. Orders of 50,000 units, orders for 60,000 units this month, and only 40,000 units during the most prosperous year last year. Mastering core technologies through independent innovation has really made us taste the sweetness.” Fuping revealed pride.

Dealing with "shuffle" with a positive attitude

“An important issue that exists in many industries in China is that the resources are too scattered, the degree of concentration is not high, and there are many problems in the allocation of resources. The final result is often rather unrefined, big and not strong. Our country has been carrying out reform and opening up for 30 years. In the equipment manufacturing industry, there should be a group of companies that can compete with internationally-known multinational companies, but it seems that they haven't yet.” Luan Ping told the “Wealth Watch” Newsweek reporter.

In this regard, Fuping said: "This plan for the first time explicitly proposed to support enterprises in cross-sectoral and cross-sectoral restructuring policies, which means that the government will not only encourage inter-regional companies to freely reorganize their policies, but also encourage the mutuality of upstream and downstream industries. It will undoubtedly bring considerable changes to the entire industry, inject momentum into the reorganization of mergers and acquisitions for the lack of power in the equipment manufacturing industry, and also provide opportunities for domestic companies to become bigger and stronger.”

In his view, the financial crisis is precisely the best time for innovative companies with strong capabilities and mergers. "A handsome ridiculous, ugly, often do not see the problem behind the situation is good. Crisis has come, all companies must calm down to practice their strengths. Who's internal strength is good, who has great potential for development, who will be able to survive. It is said that the crisis can play a role in sandstorming, so we welcome this reorganization. We call this a shuffle."

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