Cai Weici, special adviser of China Machinery Industry Federation, said that the machinery industry is entering a difficult period in which demand growth slows down obviously, the industrial structure needs to be adjusted urgently, the growth rate of main economic indicators continues to decline, and the economic efficiency deteriorates sharply. He believes that the "13th Five-Year" machinery industry should mainly focus on the mode, structure adjustment, increase vitality of these three aspects, in order to better deal with the new normal, promote the industry from big to strong.
Quality, efficiency and innovation-driven integrated development
In terms of transformation mode, first of all, the goal is to pursue from speed and scale to quality and efficiency, and from large to strong. To do this, the growth rate should be reduced from double digits to single digits, and the expectation is about 8 percent, or 7 to 8 percent. "It is necessary to form such an enterprise structure in China's machinery industry: there are a number of large enterprise groups with comprehensive competitive strength in the forefront of their counterparts in the world, and there are many 'invisible champions' who are ahead of their counterparts in the world in each subdivision of the industrial chain." Cai Weici said.
Second, innovation is the driving force of development. "Made in China 2025" has made it clear that the major project of "National Manufacturing Innovation Center Construction" should be implemented to build a generic technology innovation system in the manufacturing industry.

As the main body of the market, the machinery enterprises must also strive to become the main body of innovation-driven development. Especially those who aspires to become the industry's first enterprise, one must do it in their own professional field, to strengthen the construction of innovation ability including pay more attention to the construction of research conditions, pay more attention to product and manufacturing technology research and development activities, pay more attention to the research and development experience and data accumulation, more emphasis on the cultivation of high level research and development personnel. In order to improve their core competitiveness, the formation of competitive advantage.

The second is to break the isolation and turn to integrated development. To break machinery enterprise long-term self closed conservative ideas of development, with the upstream and downstream industry, electronic information, user enterprise, hand in hand for cross-border cooperation and collaborative innovation, to speed up the information and communications technology and manufacturing technology as the main line, the depth of the fusion conform to the trend of the development of the "Internet +", promote the development of equipment manufacturing industry innovation

In addition, we should pursue sustainable and green development. We need to change the pattern of extensive development that consumes large amounts of resources and has low pollution emission standards. Efforts to improve the level of energy saving and consumption reduction of products, and actively promote the technical transformation of machinery enterprises themselves, efforts to reduce the energy and resource consumption in the production process, and actively develop remanufacturing and circular economy.
The Ministry of Industry and Information Technology has decided to carry out the major project of "green manufacturing" during the 13th Five-Year Plan period, promoting the special technological transformation of traditional manufacturing, such as energy efficiency improvement, cleaner production, water and pollution control, and recycling. We will carry out major demonstrations of energy conservation, environmental protection, comprehensive utilization of resources, remanufacturing, and industrialization of low-carbon technologies. The emission intensity of major pollutants in key industries should be reduced by 20 percent by 2020.
We will strengthen the common foundation and make adjustments based on the situation
On structural adjustment, first, we need to proceed with structural adjustment based on the current situation. It is sobering to see that the stage of economic development has changed. The period of large-scale and high-speed industrialization has passed, and the explosive growth stage of the demand for investment machinery products has gone with it. We should understand and think about the adjustment of industrial structure and the development speed of machinery industry in the future under this premise.

The investment demand has strong correlation with the incremental demand, and has strong "cyclical" characteristics. The demand of consumption has more similarities with the demand dominated by stock, and does not have obvious cyclical characteristics. In the period of low investment demand, we should actively explore the consumption demand with weak cyclical characteristics and the demand dominated by stock.
Second, we need to strengthen the common foundation of our industries. Compared with the host machine, the basic link in China's machinery industry is obviously weak, which has become a prominent bottleneck for the whole industry to upgrade to the high-end.
Therefore, during the period of "much starker choices-and graver consequences-in" required to implement the "strong industrial base project", make the core basic spare parts/components and the key basic material safeguard ability improved, make the basis of advanced technology is widely used, make industry technology support service system more perfect, efforts to achieve the key materials, core components and the whole machine, coordinated development of the system.
The "Industrial Strong Foundation Project" will establish incentive and risk compensation mechanisms through demonstration applications to support the first batch or cross-field applications of the "four bases". In view of the urgent need of major projects and key equipment, we will support competitive enterprises to jointly tackle key problems by industry-university-research-and-application, and break the engineering and industrialization bottleneck of key basic materials and core basic components.
Relevant departments will lay out and set up a number of "four-base" research centers, create a number of public service platforms, and improve the technology integration system for key industries. By 2020, 40 percent of core basic components and components and key basic materials should be independently guaranteed, so as to gradually ease reliance on others.

Third, strive to upgrade to the direction of intelligent manufacturing. The Ministry of Industry and Information Technology has decided to take intelligent manufacturing as the entry point for the strategy of manufacturing power. The Ministry of Industry and Information Technology has made deployment to implement the "intelligent manufacturing project", which will carry out demonstration and pilot projects in six aspects, including process manufacturing, discrete manufacturing, intelligent equipment and products, new business forms and models of intelligent manufacturing, intelligent management and intelligent services.
Cai Weici believes that not all enterprises "13th Five Year Plan" can achieve "intelligent manufacturing", but machinery enterprises should make efforts to this direction. The "13th Five-Year Plan" of machinery enterprises includes both 2.0 missed lessons and 3.0 promotion, as well as the tracking and exploration of 4.0. The transformation and upgrading of traditional forms of business and the cultivation and development of new forms of business should be the subject of the development of "intelligent manufacturing".
Think long term as well as short term
Cai Weici stressed that intelligent manufacturing is the long-term development direction; But from the present point of view, most of China's machinery enterprises have not yet realized automation and digitalization, is still in the "2.0" stage, only a small part of the "3.0" level, so most enterprises to make up for the missed lessons. Therefore, China's machinery industry to automation, digital, intelligent go hand in hand.
Many machinery enterprises have accumulated rich experience in mass production in the past ten years, including many improvements to the production line and many technological experiences. It is necessary to further refine the experience of mass production in these different segments and solidify it into "complete solutions" with Chinese characteristics in specific fields, which will become the valuable intellectual property wealth of enterprises.

In view of this, the first is to accelerate the pace of high-end upgrade. In the serious oversupply of existing products, vicious competition at the same time, including the host and a variety of parts and components, almost all of the high-end areas of the products have a large number of imports, indicating that there is still attractive development space with considerable added value has not been developed. This is fully demonstrated by the annual import value of the machinery industry, which is more than US $300 billion.
The Ministry of Industry and Information Technology has decided to implement the "High-end Equipment Innovation Project" in the "13th Five-Year Plan". This major project is mainly aimed at gas turbine, Marine engineering equipment, energy saving and new energy vehicles, complete sets of smart grid equipment, high-grade CNC machine tools and robots, nuclear power equipment and other high-end equipment fields.
Second, we need to raise the level of service-oriented manufacturing. Efforts should be made to enhance the soft capability of the whole industry to serve users. On the basis of the original "hard" products to increase a variety of user-friendly "soft" parts, from selling products to users to provide users with a complete solution to the transformation. In the "hard" product demand cannot increase rapidly under the background of mining greater benefits.

Machinery enterprises should not only upgrade the technical indicators of products from their own point of view, but also pay attention to "reduce costs and increase efficiency for users". By improving their products, they make them more efficient, low consumption and durable than other products of the same trade, even imported products, so as to be more attractive to users. Once this is done, the lack of demand can be turned into a shortage of demand.
Third, we must go global and participate in international competition. China's huge manufacturing capacity is a prominent international comparative advantage. Existing production capacity in any case only in the domestic is unable to play, only stride toward the international, in the international competition is likely to find a useful place. In 2014, the export volume of China's machinery products only accounted for less than 12% of the total sales volume, which was much lower than that of Germany and Japan, indicating that the development potential is really great.

We should seize the opportunity of national implementation of "One Belt And One Road" strategy and deepen the international cooperation of machinery industry. We will innovate business models and encourage the transfer of high-end equipment, advanced technology and competitive production capacity overseas through government-driven and enterprise-led efforts. And in the participation of international competition to accelerate the competitiveness of the industry.
Under the new normal, China's machinery industry must implement "Made in China 2025", rely on innovation-driven, consolidate the foundation, strive to upgrade to the high-end, optimize the industrial structure, and develop green manufacturing and service-oriented manufacturing. Taking the deep integration of informatization and industrialization as the main line, we will persist in transformation and upgrading to improve the quality and efficiency. We will strive to achieve medium-high speed and medium-high end development. We will follow the path of reform and opening up, put people first, and accelerate the transformation of industries from large to strong.