1. High growth in the early 21st century (2001-2005)

After entering the 21st century, China has experienced a period of rapid economic growth, and the machine tool industry has also achieved further development. The importance attached by the Party and the state has created a favorable external environment for the development of the machine tool industry in the new century.

As a symbol of the development of the machine tool industry, since the "Tenth Five Year Plan" (2001-2005), the production of CNC machine tools in China has been increasing at a rate of over 30% year by year. Domestic five axis linkage machining centers and pentahedral gantry machining centers provide key equipment for national key construction projects such as energy, automobiles, and aerospace. At the same time, the development of functional components and measuring tools supporting CNC machine tools has also been accelerated. As for the metal cutting machine tool alone, in 2002, the national production reached 231000 units, including 24803 CNC machine tools. By 2003, the production of metal-cutting machine tools had reached 306800 units, including 36813 CNC metal-cutting machine tools.

At this time, the Chinese machine tool and tool industry is experiencing a situation where multiple ownership enterprises are developing together. By 2003, there were a total of 1979 state-owned enterprises in the national machine tool industry and non-state-owned enterprises with annual sales revenue of over 5 million yuan, with a production value of 74.7 billion yuan.

It is worth mentioning that the long-term cooperation mechanism for the application of domestically produced CNC machine tools in the military industry, initiated in 2005, has developed in depth over the next 10 years, becoming one of the important links for the machine tool and tool industry to participate in the development of the national defense industry. This long-term cooperation mechanism is jointly advocated by the National Development and Reform Commission, the Ministry of Industry and Information Technology, the National Defense Science and Technology Industry Bureau, the National Energy Administration, and other organizations. The China Association of Machine Tool and Tool Industries and the China Association for Peaceful Use of Military Industry Technology are organized, guided by government policies and supported by specific industry work, to explore government leadership and association bridging The military civilian integration of supply and demand interaction promotes a new path of independent innovation and localization in high-end equipment manufacturing, promotes the application of domestically produced high-end CNC machine tools in the military industry, and promotes the common development of military civilian integration.

2. Outstanding Achievements in Industry Development during the 11th Five Year Plan Period (2006-2010)

The 11th Five Year Plan was the most magnificent five years in the development history of China's machine tool industry. The national policies and measures such as the "Adjustment and Revitalization Plan for the Equipment Manufacturing Industry" and the "High end CNC Machine Tools and Basic Manufacturing Equipment" major science and technology special project (hereinafter referred to as the "Major Special Project" or "04 Special Project") have guided the machine tool industry to develop products according to the needs of national economic development, and a batch of new products such as high-end CNC machine tools and heavy-duty CNC machine tools with international standards have emerged, Partially meeting the needs of key equipment for national key construction projects. The ten major industrial revitalization plans formulated in early 2009 promoted the demand for machine tools in the equipment manufacturing industry, creating a favorable market atmosphere for the machine tool and tool industry to overcome the impact of the international financial crisis. The entire industry actively implements the spirit of relevant party meetings and policies, and the industry's economic operation continues to maintain a rapid growth trend. The independent innovation and research and development capabilities have significantly increased, greatly narrowing the gap with industrialized countries around the world.

During the 11th Five Year Plan period, China's national economy has maintained a stable and high-speed development trend, with an increasing demand for machine tool products in the market. Industries such as automobiles, aerospace, shipbuilding, energy equipment, transportation equipment, etc. have put forward higher requirements, requiring efficient, highly automated, reliable, and high-quality CNC machine tools. Market demand has promoted the acceleration of industrial structure and product structure adjustment in the machine tool industry.

From 2006 to 2008, the total industrial output value of China's machine tool and tool industry achieved high year-on-year growth of 27.1%, 35.5%, and 27.5%. Since 2008, various economic indicators have sharply declined due to the impact of the international financial crisis. In 2009, the year-on-year growth rate of the total industrial output value of China's machine tool and tool industry decreased to 16.1%. In 2010, influenced by relevant policies, the production and sales of the machine tool and tool industry resumed rapid growth, with a year-on-year growth rate of 40.6% in total industrial output value. During the same period, the proportion of China's machine tool product exports to the total national export volume has slightly increased, while the proportion of imports to the total national import volume has significantly decreased, and the dependence on foreign machine tool products has decreased.

With the rapid development of the domestic equipment manufacturing industry, there is a huge demand for mid to high-end CNC machine tools in the market. Enterprises have increased investment in product research and development, and mid to high-end new products are constantly emerging, covering almost all domestic gaps. Serialized heavy-duty and ultra heavy-duty CNC machine tools, high-speed and high-precision CNC machine tools, five axis linkage machine tools, composite CNC machine tools, flexible production lines (FMS), CNC multi-station presses, automotive panel stamping production lines, CNC tape laying machines, winding machines, large diameter CNC spinning machines, and other products, with a more complete range, variety, and specifications, have achieved better improvement and breakthrough in technical level.

During the 11th Five Year Plan period, the proportion of economic CNC machine tool production has been decreasing year by year, the proportion of medium to high-end CNC machine tool production has been increasing year by year, and the proportion of heavy-duty CNC machine tool production has increased. The machine tool and tool industry has achieved a total industrial output value of 1742.71 billion yuan, an increase of 275.8% compared to the 463.75 billion yuan in the "Tenth Five Year Plan". The production of metal cutting machine tools reached 3.122 million units, including 728000 CNC machine tools, an increase of 98.7% and 281% respectively compared to the "Tenth Five Year Plan". From 2006 to 2010, while the production of CNC metal cutting machine tools in China continued to grow, their proportion in the total production of metal cutting machine tools (units) also increased year by year, from 15% in 2006 to 30% in 2010.

The ownership structure of enterprises above the designated size in the machine tool industry has undergone significant changes. Comparing relevant data from 2005 and 2010, the proportion of private enterprises (above designated size) in the industry has increased from 42.86% to 78.3%, and the proportion of output value in the industry has increased from 21.6% to 69.2%. The number of enterprises in the entire industry has increased from 2004 to 6367, and the number of employees has increased from 493000 to 845100.

3. Entering a new stage of transformation and upgrading (2011-2019)

Since entering the 12th Five Year Plan (2011-2015), China's machine tool and tool industry has maintained a global leading position in terms of economic scale and market demand. Since 2002, China has been the world's top consumer and importer of metal processing machine tools. Since 2009, China has been the world's largest producer, consumer, and importer of metal processing machine tools in terms of output value and output.

As an important basic industry of the national economy, the continuous high attention of the Party and state leaders has enabled the industry to develop steadily. In 2012, Jia Qinglin, then a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and Chairman of the National Committee of the Chinese People's Political Consultative Conference, Li Keqiang, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and Vice Premier of the State Council, and Zhang Dejiang, Vice Premier of the State Council, respectively inspected enterprises such as Beiyi Machine Tool, Wuzhong Group, and Chongqing Machine Tool. In April of the same year, Zhang Dejiang, a member of the Standing Committee of the Central Political Bureau and Chairman of the Standing Committee of the National People's Congress, inspected Jinan Second Machine Tool Co., Ltd. National leaders also visited and inspected the China International Machine Tool Exhibition (CIMT) and China CNC Machine Tool Exhibition (CCMT) organized by the China Machine Tool and Tool Industry Association multiple times to understand the development of the machine tool and tool industry. In 2018 and 2019, national leaders repeatedly issued instructions and instructions for the development of the real economy, manufacturing industry, and machine tool industry.

Against the backdrop of sustained economic growth and leadership, the competition in the field of international machine tool manufacturing has quietly changed, shifting from competition for machine tool accuracy to competition for machine tool informatization level and comprehensive standards; The competition in the machine tool market has shifted from pure product competition to comprehensive service and service standards competition throughout the product lifecycle. Machine tool enterprises are accelerating the transformation from economies of scale to quality and efficiency oriented enterprises, from production oriented enterprises to innovative enterprises, and from extensive enterprises to intensive enterprises. China's machine tool industry has entered a new stage of transformation and upgrading.

(1) New progress has been made in the adjustment of industrial structure. Through several years of efforts, the key functional components and domestic CNC system industry have been strengthened, and the level of product and specialization has improved. The product structure adjustment of small and medium-sized enterprises shows a good trend, which indirectly reflects the progress of industrial structure adjustment in the machine tool and tool industry. In addition to striving to serve the largest user of machine tools in the automotive industry, the machine tool industry is also actively involved in the energy equipment industry, which is supported by the state. The market share of domestic CNC machine tools has significantly increased in value, and some domestic enterprises have begun to try cross-border mergers and acquisitions.

(2) Continuously optimize and upgrade the product structure. The product is adjusted from ordinary machine tools to CNC machine tools, from low-end CNC machine tools to mid to high-end CNC machine tools, from single CNC machine tools to CNC production units and flexible production lines, from universal to personalized, customized, and differentiated directions, and from digital manufacturing to intelligent adjustment. The 7th China CNC Machine Tool Exhibition (CCMT2012) held in 2012 reflected the results of product structure adjustment from another perspective, with CNC composite machine tools and five axis linkage machine tools becoming product development trends. In the past decade, the technology and quality level of domestic machine tool products have further improved, and more and more high-end products have been recognized for key field applications. This can be seen from the annual selection of the top ten innovative products by the China Machine Tool Industry Association.

(3) Innovation drives fruitful results. The National Science and Technology Progress Award is the highest national award established by the State Council, aimed at rewarding organizations or individuals for their creative contributions in technological research, development, innovation, promotion and application of advanced scientific and technological achievements, and promotion of high-tech industrialization. The China Machinery Industry Science and Technology Award is a national comprehensive science and technology award for the machinery industry, and it is also the main channel for the machinery industry to apply for the National Science and Technology Progress Award. Since the establishment of the China Machinery Industry Science and Technology Award in 2001, a total of 359 awards have been awarded in the field of machine tool tools by 2019, including 3 special awards, 37 first prizes, 117 second prizes, and 202 third prizes.

It is particularly worth mentioning that the "Large Efficient Flexible Fully Automatic Stamping Production Line" project of Jinan Second Machine Tool and the "Key Technology and Industrialization of High Performance CNC System" project jointly completed by multiple enterprises and users in the machine tool industry won the second prize of the National Science and Technology Progress Award in 2014 and 2018, respectively.

(4) Emerging private enterprises are developing rapidly. Since 2011, China's economy has entered a new normal of transformation and upgrading, with a group of emerging private machine tool enterprises standing out. Looking back to the end of the last century, especially since 2000, the manufacturing industry of 3C products, household appliances, and automotive parts in China has developed rapidly, and the demand for machining machine tools has rapidly increased. This has led to the rapid rise of a large number of emerging private machine tool enterprises, becoming a new growth pole and new force in the machine tool industry. According to the relevant research report of the China Machine Tool Industry Association, 2014-2017 was a period of rapid growth for emerging machine tool enterprises serving the 3C industry. They developed a batch of suitable CNC machine tool new products, making important contributions to China becoming a manufacturing country.

(5) Compete on the same stage as international high-level peers. During this period, Jinan Second Machine Tool Group Co., Ltd. achieved a breakthrough in the international automotive manufacturing equipment market in the United States, Japan, and Europe, becoming one of the models for Chinese machine tool enterprises to strive for strength. Since 2011, Jinan No. 2 Machine Tool has won orders for 44 stamping equipment of different specifications from Ford Motor's 4 local factories, 9 stamping lines, and a total of 44 new stamping equipment orders for Ford Motor's local factories in the United States for six consecutive times. As of now, all the stamping production lines provided by Jinan No.2 Machine Tool for Ford Motor's US factory have been delivered and used, receiving high praise from users. With excellent product quality and service, Ji'er has also won consecutive orders from automotive brands such as General Motors, Volkswagen, Nissan, and Volvo. In the second half of 2017, Ji'er achieved comprehensive breakthroughs in international markets such as Nissan North America, Nissan Kyushu, and French Peugeot Citroen. Currently, 24 overseas projects in 13 countries are being implemented, winning honors for China's equipment manufacturing.

Topic 3: Major Special Project for CNC Machine Tools

The "High end CNC Machine Tools and Basic Manufacturing Equipment" Science and Technology Major Special Project (hereinafter referred to as the "Major Special Project" or "04 Special Project") is one of the 16 national science and technology major projects determined in the "National Medium and Long Term Science and Technology Development Plan Outline (2006-2020)". Focus on developing high-end CNC machine tools and basic manufacturing equipment needed for aerospace, shipbuilding, automotive manufacturing, and power generation equipment manufacturing, gradually improving China's independent development capabilities for high-end CNC machine tools and basic manufacturing complete sets of equipment, and meeting the basic needs of major domestic industries for manufacturing equipment.

As of August 2018, the CNC machine tool program has supported nearly 600 projects, of which nearly 300 have fully passed the acceptance (task acceptance and financial acceptance), and over 400 projects have passed the task acceptance.

The special implementation is of great significance in enhancing the independent innovation ability and core competitiveness of China's CNC machine tool and basic manufacturing equipment industry, driving the structural adjustment of the equipment manufacturing industry and the development of related industries.

During the 13th Five Year Plan period, the CNC machine tool project will focus on the two major service fields of aerospace and automotive, focusing on tackling the reliability and accuracy retention technologies of CNC machine tools, increasing application verification and demonstration, meeting the new strategic needs of national autonomy and controllability, and providing support for the comprehensive implementation of Made in China 2025.