While refocusing to higher-end markets as part of going global, China's high-end equipment manufacturers should seize the chance to promote standardization, emphasize R&D in core technology and cultivate talent, and join forces with a view to increasing international competitiveness, according to an article published by the Economic Daily Information newspaper.
As China's manufacturing technologies have gradually improved over the last decade, high-end equipment manufacturers have the chance to open up better markets. But they face obstacles both old and new.
China’s nuclear power industry is widely regarded as quite competitive, “but globally over a dozen enterprises are capable of exporting sets of nuclear power technologies. In terms of technology, brand, experience, and etc., Chinese enterprises have no distinct edge,” said Yang Maochun, a senior manager in charge of international cooperation at China Guangdong Nuclear Power Group. International manufacturing giants are already doing their best to cut costs, reducing the likelihood that Chinese enterprises can wage a price war.
Other perennial problems haunt the industry. China lags behind advanced countries in core technologies, its own enterprises often engage in cutthroat competition against each other when expanding overseas, and Chinese firms have not yet adapted to international standards, while only modest progress has been made in promoting Chinese standards internationally.
Addressing the problems, the article proposed that the Chinese enterprises should forge highly competitive international brands. They should export products, capital and management instead of just products, create new investment and financing modes for engineering schemes, and improve risk management. Meanwhile, after-sale services should be sound and effective.
The article argued that China needs to seriously push the advancement of its own standards. It said the country should invest more in standardization efforts through policy guidance and encourage enterprises to participate in the process, while adapting to international standards for high-end manufacturing.
China must also strengthen core technology R&D and professional personnel training. Through incentives such as preferential policies it should motivate enterprises to engage in R&D, and encourage them to acquire core technologies through overseas mergers and acquisitions. It should explore new ways to cultivate talented personnel and establish training and incentive systems for personnel dispatched overseas and locally employed talent.
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