A brief analysis of why China's machine tools do not dominate the price

The machine tool industry is similar to some other industries in China's machinery industry. In international competition, it is only in the middle and low grades, mainly in low-end products, that is, in products with relatively labor-intensive and low technology added value. In the middle and high-end products, that is, products with higher technical content, there is no comparative advantage.

Therefore, we must: (1) take advantage of the opportunity to join the WTO to implement a large export strategy for medium and low-end products with comparative advantages, maximize efforts to open up overseas markets, and vigorously increase exports until they leave the country and turn comparative advantage into actual Economic benefits.

(2) Converting comparative disadvantages into comparative advantages, replacing imports and converting them into exports. Products that do not have comparative advantages should make full use of the preferential treatment and transitional arrangements of developing countries after the addition of WTO. It is reasonable and legal to provide necessary protection for China's infant industry, market and industrial security in a short period of time and to greatly improve the economic and technological cooperation environment among WTO members.

For example, in the popular CNC machine tools, we do not have a competitive advantage in terms of price. The reasons are manifold. One of the important factors is that there are still some gaps in the performance of some functional components in China, such as ball screws, rolling guides, hydraulic and pneumatic components. Some OEMs have increased costs by using expensive imported products.

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