The machine tool industry has been one of the key development industries since the founding of the country. Before the "Cultural Revolution", through the introduction of Soviet technology, a complete machine tool industry system has been basically established, especially heavy-duty, precision machine tools have been able to basically meet the needs of domestic construction, and have contributed to the defense industry. In the past 30 years of reform and opening up, machine tool technology, numerical control, and output value have also made great progress. In 2008, China's machine tool output ranked third in the world, and the numerical control rate reached 20%. However, looking at the world, we still have a big gap with international advanced technology. China's machine tool industry has the world's highest output, its output value has reached the third place and its technology ranks second in the world in terms of technology, really big but not strong. In 2008, China's machine tool imports were 7.58 billion US dollars, ranking first in the world, while exports were only 2.1 billion US dollars. The domestic machine tool market share in the domestic market was only 61%. At the same time, the number of imported products is not large, but the added value of technology is extremely high and expensive. And we exported many products but the value is low, mostly labor-intensive or material-type (such as drill bits, abrasives, etc). The reason is that technology is not as good as others.
The quality of our machine tools is roughly listed after Switzerland, Germany, Japan, Italy, France, the United States, Britain and Spain. In the late 1960s, under the impetus of precision machine tools, the coordinate boring machine and gear grinding machine produced in China still had a certain technical content. In the 1980s, some machine tool factories used German and Japanese companies to manufacture machine tools with stricter quality, and they did a good job, exporting a considerable amount. On the basis of that time, today's gear grinding products in China are at an internationally high level.
We have made considerable advances in recent years after our products' varieties are behind thoes of Germany and Japan. For example we developed the development of multi-coordinate linkage, CNC composite processing machine tools and other high-end CNC products, however, which are still difficult to meet the needs of the military, automotive and other industries.
In order to develop the machine tool industry, it is necessary to enhance competitiveness, strive to improve quality, vigorously develop varieties, and upgrade the level of technology to replace imports and expand exports. When the economic situation of machine tools was not good many years ago, some companies have proposed "survive by quality and develop by variety". We use this as the long-term development policy of the industry.