"Made in China" 2025 identifies CNC machine tools and basic manufacturing equipment as strategic areas for accelerating breakthroughs, proposing to strengthen forward-looking deployment and key technological advancements, actively planning to seize future technological and industrial competitive manufacturing points, and improving the international division of labor level and influence. This strategic goal is determined by the characteristics of the CNC machine tools and basic manufacturing equipment industry and its development stage. It is essential to study, understand, and thoroughly implement this proposal.

1. CNC machine tools and basic manufacturing equipment possess strategic industrial characteristics.

1. Establishing the global competitive position of China's equipment manufacturing industry.

CNC machine tools and basic manufacturing equipment are the "working machines" of the equipment manufacturing industry. The technical level and product quality of a country's machine tool industry are crucial indicators for measuring the development level of its equipment manufacturing sector. "Made in China" 2025 lists CNC machine tools and basic manufacturing equipment as one of the strategic areas of China's manufacturing industry primarily because they have an "anchoring" effect on the position of a country's manufacturing industry, particularly the equipment manufacturing sector in the international division of labor: CNC machine tools and basic manufacturing equipment are foundational for generating manufacturing value and serve as the fulcrum for industrial advancement, being central to basic manufacturing capacity. Only with a solid basic manufacturing capacity can advanced equipment products be produced, enabling the creation of high-value products.

2. Supporting the strategic needs of national defense and industrial security.

In terms of national defense security, CNC machine tools and basic manufacturing equipment hold a strategic significance beyond mere economic value for manufacturing advanced national defense equipment. The materials, structures, and processing technologies of many key components in modern national defense equipment possess specific characteristics and processing challenges. Ordinary processing equipment and traditional processing technologies cannot meet these requirements. Multi-axis linkage, high-speed, and high-precision CNC machine tools can fulfill these processing needs. Even amidst today's global integration, developed countries still impose technological blockades and restrictions on our country. Regarding industrial safety, as the domestic manufacturing industry upgrades, competition between high-tech and high value-added industries, represented by the equipment manufacturing sector, and developed countries has intensified. Construction machinery, electrical machinery, and transportation equipment are entering the international high-end market. However, there remains a gap in processing accuracy, reliability, efficiency, automation, intelligence, and environmental protection of domestic machine tool products, which weakens the overall competitiveness of the industry.

3. Meeting the significant support for the transformation and upgrading of the user field.

Currently, the demand structure of downstream users in the machine tool industry is trending towards high-end development. Many industries are undergoing large-scale and deep-seated structural adjustments and upgrades, creating an urgent need for high-quality and high-tech machine tools. Generally, the market demand for medium and high-grade CNC machine tools is rapidly increasing. Users require more high-speed, high-precision, composite, flexible, multi-axis linkage, intelligent, high-stiffness, and high-power CNC machine tools. For instance, the automobile industry is experiencing trends of mass production, diverse varieties, and rapid model updates, with the development of new energy vehicles accelerating, necessitating continuous advancements in processing equipment towards precision, efficiency, and intelligence. In the aerospace sector, the rapid increase in demand for civil aircraft and the cross-generational development of military aircraft are pushing the new generation of aircraft towards lightweight, high reliability, long life, high stealth, multi-configuration, rapid response, and low-cost manufacturing. The new generation of technology urgently requires more advanced processing equipment, with aviation manufacturing equipment evolving towards automation, flexibility, digitization, and intelligence. For example, in aircraft engine manufacturing, which is focused on breakthroughs in the "two-machine special project," typical components such as engine blades, complete machine cases, and bladed discs are progressively developing towards larger sizes, complex profiles, lightweight structures, and precision manufacturing, particularly with the extensive use of new lightweight materials like high-strength, high-temperature heat-resistant alloys. The geometric configurations of these integral structural parts are complex and challenging to process, leading to new and higher demands for large torque and high precision CNC machine tools. The portable or movable multi-axis linkage CNC equipment required for maintaining large-scale structural parts and equipment in various locations presents greater challenges to the structural design, process specifications, and energy-efficient processing technologies of new CNC equipment.

4. The strategic high ground of the new technological revolution.

The elements of intelligent manufacturing, energy internet, and new generation information technology innovation included in the new round of scientific and technological revolution provide driving force for technological breakthroughs in China's equipment manufacturing industry, as well as a vast market for the equipment manufacturing sector, especially high-end equipment manufacturing. The machine tool industry is a crucial intersection of information technology and industrial technology, and the industry itself is highly sensitive to new technologies. It is also a primary source for the diffusion of emerging technologies. Driven by the wave of the new technological revolution, the trend of integrated innovation in the machine tool industry is evident. Leading companies worldwide are accelerating the integration of new technologies into the machine tool industry, with network technology and intelligent technology hastening the integrated application of machine tool products. More and more internationally renowned machine tool parts companies and complete machine manufacturers are rapidly applying new technologies in CNC machine tools.

5. The strategic fulcrum of the adjustment of the global manufacturing pattern.

In the post-crisis era, developed economies have emphasized the development of their own real economy: either continuing to promote the integration and development of emerging technologies to enhance industrial technology; or by reconstructing the industrial chain, allowing more high value-added production and manufacturing links and associated jobs to return locally. The United States has proposed the implementation of the "Advanced Manufacturing Partnership Plan" and the "Advanced Manufacturing National Strategic Plan" to foster advanced manufacturing and technology; Germany has outlined a blueprint for the development of Industry 4.0, focusing on CPS as the core and smart factories as the carrier to advance German Industry 4.0 and position it as the technology platform for a new round of industrial revolution; Japan has published a blueprint for its industrial structure, identifying 10 cutting-edge technology fields to strengthen its domestic manufacturing industry; the United Kingdom, South Korea, India, Taiwan, and other regions have also introduced proactive strategies and policies to promote the integration of emerging technologies in the equipment industry, such as CNC machine tools. The machine tool industry has consistently been a significant strategic focal point for major countries and leading companies. The future manufacturing landscape will undergo changes and adjustments, particularly for high-strategic industries like global automobiles, aerospace, and high-end equipment manufacturing. The machine tool industry is a vital strategic fulcrum, playing a crucial role in future competitiveness leverage. Our country should enhance its focus on the machine tool industry, strategically position key areas in advance, and strive for a favorable position in global manufacturing competition.

2. The trend of industry upgrading is evident.

1. Breakthrough key core technologies and develop a batch of iconic products.

In the aviation sector, we have independently developed heavy forging equipment such as the 800MN large die forging press and the 120MN aluminum alloy plate tension drawing machine, filling the gap in the overall forming technology for large-scale heavy parts in the domestic aviation field and providing strong support for the cross-generational development of military aircraft and large aircraft. Notably, the 800MN large die forging press has achieved the integral formation of over 30 types of key titanium alloy parts in aviation, and the high-quality aluminum alloy thick plates produced by the 120MN aluminum alloy wide plate tension stretching machine have been applied to main bearing structural components like aircraft wings, thus eliminating the reliance on imports for China's large aircraft aluminum alloy thick plates.

In the automobile manufacturing sector, the large-scale, fast, and efficient CNC automatic stamping production line has secured batch orders from local automobile factories in the United States through international bidding, gaining recognition and respect from international counterparts. Currently, the domestic market share of automobile panel stamping lines exceeds 70%, and the global market share has surpassed 30%, effectively promoting the autonomy of domestic automobile equipment.

In the field of power generation equipment, the 36000-ton black vertical metal extrusion machine has achieved independent production of domestic high-end heat-resistant steel large-diameter thick-wall seamless steel pipes used in 1000MW ultra-supercritical thermal power units. Large-scale opening and closing heat treatment equipment has produced Asia's largest nuclear power whole forging rotor forgings, forming the mass production capacity of large rotors; the ultra-heavy CNC vertical turning and milling compound machine tool, the numerical control heavy bridge gantry five-axis turning and milling compound machine tool, the ultra-heavy CNC floor milling and boring machine, the ultra-heavy CNC horizontal boring lathe, the special numerical control axial wheel groove milling machine, etc. developed for the third generation nuclear power nuclear island and regular island equipment have solved the processing problems of nuclear power pressure vessels and hanging baskets, heat exchangers, steam turbine cylinders, generator rotors and generator rotors, etc.

Optimization and adjustment of product structure and steady improvement of technical level

First of all, the level of high-end equipment has improved rapidly. Currently, more than 10 types of equipment such as automatic stamping lines for large automobile panels have reached the international leading level, and import substitution can be fully realized. High-speed gantry five-axis machining centers and more than 20 types of products have basically reached the international advanced level, with the level of replacing imported products. Precision horizontal machining centers formed with independent intellectual property rights and flexible manufacturing system core technology. High-speed, composite and other high-end CNC machining centers have completed phased research and development, but there is still a certain gap between functional performance and reliability and the international advanced level. Secondly, the numerical control system has made significant progress. China has made great strides in the research and development of mid-to-high-end CNC systems. Since 2010, it has accumulated more than 35000 domestic mid-to-high-end CNC systems in key areas such as aerospace, energy, shipping, and automobiles, achieving import substitution. Multi-channel, multi-axis linkage and other high-performance CNC system products have broken the monopoly of foreign technology, with the main technical indicators basically reaching the level of the international mainstream high-end CNC system, achieving a variety of high-speed, precision CNC machine tools. High-grade numerical control systems have been applied in key military enterprises for small batch production. The development of standard CNC systems has achieved mass production, with the domestic market share increasing from 10% to 25%. Several industrial production bases have been formed. Among them, Guangzhou CNC Equipment Co., Ltd. has formed an annual production capacity of 100000 sets of various CNC systems, ranking second in the world. China's numerical control system has initially possessed competitiveness with similar foreign products and has realized the batch export of numerical control systems. From 2010 to 2014, more than 9600 sets of various numerical control systems were exported, including nearly 700 sets of five-axis linkage numerical control systems. Finally, the product quality level of functional components has been steadily improved, and the variety series has been continuously enhanced. Domestic functional components have achieved batch matching with machine tool hosts; tool products have basically the ability to provide modern cutting tools for the automotive industry. The application demonstration and batch matching of CNC systems, functional components, and tools with CNC machine tool hosts will help to form a complete industrial chain and promote the structural adjustment of the machine tool industry.

Independent innovation has been significantly improved and sustainable development has been guaranteed.

In recent years, the basic and common technology research of machine tool manufacturing has been continuously strengthened, and product development and technical research have been promoted simultaneously. The maturity of many key technologies such as reliability design and performance test technology of machine tool products and multi-axis linkage processing technology has been greatly improved. The research results of digital design technology have been applied in the design of high-precision CNC coordinate boring machines, vertical machining centers, and other products. The software and hardware systems such as real-time dynamic comprehensive compensation of multiple errors and error compensation of embedded CNC systems have been demonstrated and applied in many enterprises and products, significantly improving the accuracy of CNC machine tools.

High-end development of the industry has a long way to go

China's machine tool industry occupies an important position in the world machine tool industry system and the global machine tool market, but it still cannot be regarded as a machine tool power. Compared with the world machine tool power, China's machine tool industry still has a certain gap, especially in high-end machine tool competitiveness. Additionally, affected by the complex economic situation at home and abroad, the development of China's machine tool industry has returned to a new normal, and the requirements for the transformation and upgrading of the industry to the middle and high end are urgent.

International competitiveness needs to be improved

According to the consulting agency Gardener statistics, in the world's machine tool consumer market, China's machine tool exports in 2014 amounted to $3.3 billion, accounting for less than 5% of the world's total machine tool consumption, while Japan and Germany accounted for more than 10%. At the same time, a considerable part of the high-and mid-range CNC machine tools that are urgently needed in China rely on imports. For example, imported equipment in the automotive field accounts for more than 40%.

The development of key parts of the machine tool industry needs to be strengthened

Domestic functional components in terms of variety, quantity, and grade cannot meet the host supporting requirements; the domestic mid-range supporting functional components market share still needs to be improved. The competitiveness of the supporting functional components industry needs to be rapidly enhanced.

Process validation and demonstration applications need to be strengthened

From prototype development to actual production application, CNC machine tools need to be verified by a large number of tests and continuous improvement in manufacturing process, reliability, precision retention, engineering, etc. At the same time, users need to provide process verification. The process verification and application demonstration is also a shortcoming in the development of the CNC machine tool industry in China.

High pressure on industrial development

Global machine tool production and consumption continue to show a shrinking trend. According to data released by US Gardner companies, global machine tool consumption in 2014 was US $75.3 billion, up only 0.3 percent from 2013. Global machine tool production declined for three consecutive years. Global machine tool output in 2014 was US $81.2 billion, down 3.1 percent from 2014. China's CNC machine tool industry also continued to operate under pressure and was in a downward range as a whole. In 2014, the output of domestic metal processing machine tools decreased by 2% year-on-year, of which the output of metal cutting machine tools decreased by 1.7%, and the output of metal forming machine tools decreased by 3.3%. At the same time, the demand for imported machine tools in the domestic market rose instead of falling. In 2014, the total import of machine tools was 17.78 billion US dollars, an increase of 10.8 percent over the same period last year, of which the import of metal processing machine tools was 10.83 billion US dollars, an increase of 7.6 percent over the same period last year. This shows that the domestic machine tool industry is struggling to meet the high-end needs of enterprises, and the domestic machine tool industry is under the dual pressure of cyclical and structural challenges.

Speed up the strategic thinking of the industry to become stronger.

Promote the focused development of superior resources

On the basis of improving the independent innovation ability and market competitiveness of domestic CNC machine tools and basic manufacturing equipment, we will promote superior resources to focus on the two major fields of aerospace and automobile, concentrate on core equipment and key technologies, and focus on solving the bottleneck problems of key technologies such as performance reliability, stability, and complete set of research and development equipment.

Promote the demonstration application of advanced products

Increase investment in the construction of application verification and application demonstration bases for key technologies and core equipment of machine tools and basic manufacturing equipment that are representative of user needs, can focus on verifying the application of key technologies and core equipment, and selectively support market-oriented product sets, high flexibility, and intelligence projects, focusing on solving the high efficiency and intelligence of equipment.

3. Meeting the new needs of national strategies

Accelerate the development of national strategic development needs CNC machine tools and basic manufacturing equipment, further focus on the core equipment of national key projects, develop major products, and break through key technologies. Efforts to improve the technical level of numerical control equipment, breaking the national strategic equipment dependent on imports.

4. To build a complete machine tool supporting industry chain

Encourage and support CNC machine tools and basic manufacturing equipment mainframes, CNC systems and functional components and other industrial chain related units to form long-term and stable strategic partnerships, establish long-term supporting relationships between CNC systems, functional components and machine tool companies, and create a complete CNC machine tools and basic manufacturing equipment supporting industrial chain.