In the realm of national defense and security, CNC machine tools and advanced manufacturing equipment play a strategically critical role in producing cutting-edge defense systems—far beyond their economic value. Many key components in modern defense technologies demand materials, structural designs, and manufacturing processes that are both highly specialized and exceptionally challenging to produce using conventional machining equipment or traditional methods. To meet these exacting requirements, multi-axis, high-speed, and ultra-precise CNC machines are essential. Even in today’s globally integrated world, developed nations continue to impose technological blockades and restrictions on our country. From an industrial security perspective, as China’s domestic manufacturing sector accelerates its upgrade, industries like equipment manufacturing—characterized by high technological complexity and significant added value—are increasingly competing directly with their global counterparts. Sectors such as construction machinery, electrical equipment, and transportation vehicles are now at a pivotal stage as they strive to penetrate international markets at the高端 level. However, domestically produced machine tools still lag behind in several critical areas, including machining accuracy, reliability, efficiency, automation, intelligence, and environmental sustainability. This gap ultimately undermines the overall competitiveness of China’s manufacturing industry on the global stage.

　　Currently, downstream user demand in the machine tool industry is shifting toward higher-end products, as multiple industries undergo extensive and deeply rooted structural adjustments and upgrades. As a result, there is an urgent need for high-quality, technologically advanced machine tools. Overall, market demand for mid-to-high-end CNC machine tools is growing rapidly, as users increasingly seek machines that deliver high speed, exceptional precision, multifunctionality, flexibility, multi-axis linkage, intelligence, superior rigidity, and robust power capabilities. For instance, the automotive industry is moving toward mass production of diverse models with rapid model updates. Meanwhile, the rapid rise of new energy vehicles is driving further innovation in manufacturing equipment, pushing it to continuously evolve toward greater precision, efficiency, and智能化 (smartification). In the aerospace sector, soaring demand for civilian aircraft—combined with the next-generation development of military jets—has spurred a shift in aircraft design toward lighter materials, enhanced reliability, extended service life, improved stealth capabilities, greater design versatility, faster response times, and cost-effective manufacturing processes. To support these cutting-edge advancements, the industry urgently requires more sophisticated machining equipment. Consequently, aerospace manufacturing technologies are rapidly advancing toward automation, flexibility, digitalization, and intelligent systems.Take, for instance, the "Two Engines Special Project," which focuses on groundbreaking advancements in aircraft engine manufacturing. Components such as engine blades, integral engine casings, and blisks are evolving toward larger dimensions, more intricate surface geometries, lighter yet stronger structures, and ultra-precise manufacturing processes. Notably, the widespread adoption of advanced lightweight materials—like high-strength, high-temperature heat-resistant alloys—presents significant challenges. These complex structural parts not only require higher torque and precision from CNC machines but also push the limits of traditional machining techniques. Moreover, large-scale structural components of gas turbines—and the growing need for portable or mobile multi-axis CNC equipment capable of remote maintenance—pose additional hurdles. This innovative approach involves using small, reconfigurable, baseless machine tools to efficiently process massive workpieces, a method that places unprecedented demands on the structural design, operational specifications, and energy-efficient processing technologies of next-generation CNC systems.

　　1. Anchoring China's equipment manufacturing industry in the global competitive landscape

　　CNC machine tools and basic manufacturing equipment are the "mother machines" of the equipment manufacturing industry. A nation's technological sophistication and product quality in the machine tool sector serve as a key indicator of its overall manufacturing development level. Under the "Made in China 2025" initiative, the CNC machine tool and basic manufacturing equipment industries have been identified as one of China's strategic priority areas—primarily because these sectors play an "anchoring" role in a country's position within the global manufacturing value chain, particularly in equipment manufacturing. CNC machine tools and foundational manufacturing equipment form the very basis for generating manufacturing value and act as the pivotal point for industrial advancement. They are also at the core of a nation's fundamental manufacturing capabilities. Only by building robust foundational manufacturing capabilities can a country hope to produce cutting-edge equipment—and ultimately achieve the creation of high-value products.

　　2. Strategic needs supporting national defense and industrial security

　　In the realm of national defense and security, CNC machine tools and advanced manufacturing equipment play a strategically critical role in producing cutting-edge defense systems—far beyond their economic value. Many key components in modern defense technologies demand materials, structural designs, and manufacturing processes that are both highly specialized and exceptionally challenging to produce using conventional machining equipment or traditional methods. To meet these exacting requirements, multi-axis, high-speed, and ultra-precise CNC machines are essential. Even in today’s globally integrated world, developed nations continue to impose technological blockades and restrictions on our country. From an industrial security perspective, as China’s domestic manufacturing sector accelerates its upgrade, industries like equipment manufacturing—characterized by high technological complexity and significant added value—are increasingly competing directly with their global counterparts. Sectors such as construction machinery, electrical equipment, and transportation vehicles are now at a pivotal stage as they strive to penetrate international markets at the高端 level. However, domestically produced machine tools still lag behind in several critical areas, including machining accuracy, reliability, efficiency, automation, intelligence, and environmental sustainability. This gap ultimately undermines the overall competitiveness of China’s manufacturing industry on the global stage.

　　3. A crucial support for meeting the needs of users' domain transformation and upgrading

　　Currently, the downstream user demand in the machine tool industry is shifting toward higher-end products, with multiple industries undergoing extensive and deep-seated structural adjustments and upgrades. As a result, there is an urgent need for high-quality, technologically advanced machine tools. Overall, market demand for mid-to-high-end CNC machine tools is growing rapidly, as users increasingly require machines that offer high speed, exceptional precision, multi-functionality, flexibility, multi-axis linkage, intelligence, superior rigidity, and robust power capabilities. For instance, the automotive industry is trending toward mass production of diverse models with rapid model updates. Meanwhile, the rapid rise of new energy vehicles is driving further innovation in manufacturing equipment, pushing it to evolve continuously toward greater precision, efficiency, and智能化 (smartification). In the aerospace sector, soaring demand for civilian aircraft—coupled with the next-generation development of military jets—has spurred a shift in aircraft design toward lighter materials, enhanced reliability, extended service life, improved stealth capabilities, greater design versatility, faster response times, and cost-effective manufacturing processes. To support these cutting-edge advancements, the industry urgently requires more sophisticated machining equipment. Consequently, aerospace manufacturing technologies are advancing rapidly toward automation, flexibility, digitalization, and intelligent systems. Take, for example, the "Two Engines Special Project," which focuses on breakthroughs in aircraft engine manufacturing. Components like engine blades, integral engine casings, and blisks are evolving toward larger dimensions, more intricate surface geometries, lighter yet stronger structures, and ultra-precise manufacturing processes. Notably, the widespread adoption of advanced lightweight materials—such as high-strength, high-temperature heat-resistant alloys—poses significant challenges. These complex structural parts not only demand higher torque and precision from CNC machines but also push the boundaries of traditional machining techniques. Moreover, large-scale structural components of gas turbines and the need for portable or mobile multi-axis CNC equipment capable of异地维修 (remote maintenance) present additional hurdles. This innovative approach involves using small, reconfigurable, baseless machine tools to efficiently process massive workpieces—a method that places unprecedented demands on the structural design, operational specifications, and energy-efficient processing technologies of next-generation CNC systems.

　　4. It is the strategic high ground of the new technological revolution.

　　The new wave of the technological revolution—driven by elements such as intelligent manufacturing, the energy internet, and next-generation IT innovations—provides critical momentum for China’s equipment manufacturing sector to achieve breakthroughs in technology. At the same time, it opens up vast market opportunities, particularly for high-end equipment manufacturing. As a key intersection point where information technology meets industrial technology, the machine tool industry itself demonstrates remarkable sensitivity to emerging technologies—and serves as a major conduit for the widespread adoption of these innovations. Driven by the transformative power of the latest tech revolution, the machine tool industry is increasingly embracing integrated innovation. Leading global companies are accelerating the integration of cutting-edge technologies into their machine tool operations, with networked and intelligent solutions rapidly being incorporated into machine tool products. Meanwhile, an growing number of internationally renowned machine tool component suppliers and manufacturers are speeding up the seamless integration of new technologies into CNC machine tools, further propelling the industry toward greater efficiency and competitiveness on the global stage.

　　5. The Strategic Pivot for Global Manufacturing Shifts

　　As we enter the post-crisis era, developed economies are increasingly prioritizing the growth of their real economies: some are actively fostering the integration and advancement of emerging technologies to drive the high-end transformation of industrial sectors, while others are reshaping their supply chains to bring more high-value-added manufacturing processes—and the associated job opportunities—back home. The United States has successively launched initiatives like the "Advanced Manufacturing Partnership" and the "National Strategic Plan for Advanced Manufacturing," aimed at advancing cutting-edge manufacturing technologies. Meanwhile, Germany has unveiled its Industry 4.0 blueprint, focusing on Cyber-Physical Systems (CPS) as its core innovation and leveraging smart factories as the cornerstone for transforming German industry—a vision positioned as the technological foundation for the next wave of industrial revolution. Japan, too, has unveiled a comprehensive industrial strategy, identifying 10 key areas of advanced technology and using these as a springboard to strengthen its domestic manufacturing sector. Meanwhile, regions such as the UK, South Korea, India, and Taiwan have all introduced proactive strategies and policies designed to accelerate the integration of emerging technologies into critical industries like CNC machine tools and other equipment sectors. Historically, the machine tool industry has always been a strategic focal point for major global powers and leading enterprises. As the global manufacturing landscape continues to evolve and reshape—particularly in high-stakes sectors such as automotive, aerospace, and advanced equipment manufacturing—machine tools stand as a vital strategic linchpin. They play a pivotal role in shaping future competitive advantages, making it essential for countries like China to elevate their focus on this industry, proactively plan for critical strategic areas, and secure a strong foothold in the global manufacturing race.

　　II. Clear Trends Toward Industry Upgrading

　　1. Break through key core technologies and develop a batch of landmark products

　　In the aerospace sector, domestically developed heavy-duty forging and pressing equipment—including an 800MN large-scale die-forging press and a 120MN aluminum alloy plate tension stretching machine—has filled a critical gap in China's ability to achieve integrated forming of large, complex aerospace components. These advancements provide robust support for next-generation military aircraft development and the creation of large commercial airliners. Notably, the 800MN large-scale die-forging press has already enabled the successful integrated forming of over 30 types of key titanium alloy parts used in the aviation industry. Meanwhile, the 120MN-class aluminum alloy wide and thick plate tension stretching machine has produced high-quality aluminum alloy thick plates that are now being applied to critical load-bearing structural components, such as aircraft wings, effectively breaking free from China's longstanding reliance on imported aluminum alloy thick plates for large aircraft manufacturing.

　　In the automotive manufacturing sector, a large-scale, high-speed, and highly efficient CNC fully automated stamping production line has secured a bulk order for a production line at a U.S. auto plant in an international bid against world-class companies, earning recognition and respect from its global peers. Currently, this automotive body panel stamping line holds over 70% market share in China and more than 30% globally, significantly boosting the localization and self-reliance of China’s automotive equipment industry.

　　Domestically produced functional components fail to meet the requirements for compatibility with main equipment—neither in terms of variety, quantity, nor quality level. Moreover, the market share of domestically manufactured mid-range functional components still needs improvement, while high-end products largely depend on imports. As a result, the competitiveness of China's supporting functional component industry urgently requires rapid enhancement.

　　2. Optimized product structure adjustments, with steadily improving technological capabilities

　　First, the level of mid-to-high-end equipment has been rapidly improving. Currently, more than 10 types of equipment—such as large-scale automotive body panel automatic stamping lines—have already reached international leading standards, making them fully capable of replacing imported alternatives. Additionally, over 20 product categories, including high-speed gantry five-axis machining centers, have essentially achieved advanced international levels, positioning them to compete with imported products. Meanwhile, precision horizontal machining centers now boast core technologies backed by independent intellectual property rights and integrated flexible manufacturing systems. High-speed, multi-tasking, and other high-end CNC machining centers have completed phased R&D efforts, though they still lag slightly behind global leaders in terms of functional performance and reliability. Second, China’s CNC system development is steadily advancing up the technology ladder. Significant progress has been made in the research and development of mid-to-high-end CNC systems. Since 2010, over 35,000 domestically produced mid-to-high-end CNC systems have been successfully integrated into key sectors such as aerospace, energy, shipbuilding, and automotive, effectively replacing imported solutions. Moreover, a series of high-performance CNC systems—including multi-channel and multi-axis linkage models—have broken foreign technological monopolies, with key technical indicators now closely matching those of mainstream international high-end CNC systems. These advanced systems are now being used to power a wide range of high-speed, precision CNC machine tools. Small-batch applications of top-tier CNC systems have also begun in major defense-related enterprises. Meanwhile, standardized CNC systems have entered mass production, significantly boosting their market share in China—from 10% to 25%. Several industrialized production bases have emerged, with Guangzhou CNC Equipment Co., Ltd. alone boasting an annual production capacity of 100,000 CNC systems of various types, ranking second globally in output. As a result, China’s CNC systems are gradually gaining competitiveness against their foreign counterparts, even achieving small-scale exports. From 2010 to 2014, the country exported over 9,600 sets of CNC systems, including nearly 700 sets of five-axis CNC systems. Finally, the quality and variety of functional components continue to improve steadily, with an increasingly comprehensive product lineup. Domestically produced functional components are now widely available for bulk integration with machine tool spindles, while cutting tools have largely matured to the point where they can supply modern cutting tools tailored specifically for the automotive industry. The successful demonstration and widespread adoption of CNC systems, functional components, and cutting tools alongside machine tool hosts are helping to establish a complete industry ecosystem, driving critical structural adjustments within China’s broader machine tool sector.

　　3. Independent innovation has significantly improved, ensuring sustainable development.

　　In recent years, research into foundational and common technologies for machine tool manufacturing has steadily intensified, with product development advancing hand-in-hand with technological innovation. Significant progress has been made in the maturity of several key technologies, including reliability design and performance testing for machine tool products, as well as multi-axis linkage machining techniques. Moreover, digital design technology has been successfully applied to the development of high-precision CNC coordinate boring machines and vertical machining centers. Additionally, advanced software and hardware systems—such as real-time dynamic compensation for multiple error sources and embedded CNC system error compensation—have been demonstrated across various enterprises and product lines, leading to notable improvements in the precision of CNC machine tools.

　　III. High-End Industrial Development Faces a Long Road Ahead

　　China's machine tool industry holds a significant position within the global machine tool ecosystem and the international market, yet it still cannot be classified as a true powerhouse in this sector. Compared to the world's leading machine tool nations, China’s industry continues to lag behind—particularly in terms of competitiveness for mid-to-high-end machines. Moreover, influenced by complex domestic and global economic conditions, China’s machine tool industry is now transitioning back to a "new normal," making it increasingly urgent to drive the sector toward higher-value, mid-to-high-end products through innovation and transformation.

　　1. International competitiveness remains to be improved.

　　According to statistics from the consulting firm Gardener, in 2014, China's machine tool exports totaled $3.3 billion, accounting for less than 5% of the global machine tool market—far behind Japan and Germany, both of which held shares exceeding 10%. Meanwhile, a significant portion of domestically needed mid-to-high-end CNC machine tools still relies on imports, with imported equipment accounting for more than 40% in sectors like automotive manufacturing.

　　2. Development of key components for the machine tool industry urgently needs to be strengthened.

　　Domestically produced functional components fail to meet the requirements for matching with main equipment, both in terms of variety, quantity, and quality level. Moreover, the market share of domestically manufactured mid-range functional components still needs improvement, while high-end products largely rely on imports. As a result, the competitiveness of China's supporting functional component industry remains亟需 rapid enhancement.

　　3. Process validation and demonstration applications still need to be strengthened.

　　From prototype development to actual production application, CNC machine tools require extensive testing and validation across various aspects—such as manufacturing processes, reliability, precision retention, and engineering optimization—while continuously undergoing improvements. Additionally, user-driven process validation is essential throughout this stage. However, both process validation and application demonstrations remain significant weaknesses in the development of China's CNC machine tool industry.

　　4. Pressure on industrial development remains persistently high

　　Global machine tool production and consumption continue to show a contracting trend. According to data released by the U.S.-based Gardner company, global machine tool spending in 2014 reached $75.3 billion, representing a mere 0.3% increase compared to 2013. Meanwhile, global machine tool production has declined for the third consecutive year, with output falling to $81.2 billion in 2014—a 3.1% drop from the previous year. China’s CNC machine tool industry continues to face significant challenges, remaining firmly in a downturn. In 2014, domestic metalworking machine tool production fell by 2% year-on-year, with metal-cutting machine tools declining 1.7% and metal-forming machines dropping 3.3%. At the same time, demand for imported machine tools in the domestic market has not only remained steady but actually risen—total imports of machine tools surged to $17.78 billion in 2014, up 10.8% from the previous year. Notably, imports of metalworking machine tools climbed by 7.6% year-on-year, reaching $10.83 billion. This highlights the growing gap between domestic supply and the high-end needs of Chinese manufacturers, placing the country’s machine tool industry under dual pressures: both cyclical and structural. As a result, the industry urgently needs to identify new avenues for growth and innovation to stay competitive in an increasingly demanding market.

　　4. Accelerate the strategic approach to driving significant growth and strength across the industry

　　1. Drive the concentration of superior resources toward development

　　Building on the goal of enhancing the independent innovation and market competitiveness of domestically produced CNC machine tools and foundational manufacturing equipment, we will focus superior resources on the two key sectors— aerospace and automotive—and concentrate on core equipment and critical technologies. The primary objective is to overcome critical bottlenecks in areas such as performance reliability, stability, and system integration for these advanced manufacturing systems.

　　2. Promote demonstration applications of advanced products

　　Increase investment in user-driven, representative projects that can centrally validate the application and demonstration of critical technologies and core equipment for machine tools and foundational manufacturing systems. Additionally, selectively support comprehensive, highly flexible, and intelligent product lines that are strongly market-oriented—focusing specifically on enhancing equipment efficiency and intelligence.

　　3. Meeting New National Strategic Needs

　　To accelerate development, we must meet the strategic needs of national development by advancing CNC machine tools and foundational manufacturing equipment. We should further focus on core technologies essential for China's key national projects, developing cutting-edge products and achieving breakthroughs in critical technologies. At the same time, we must strive to enhance the technological sophistication of CNC equipment, ultimately breaking free from reliance on imported strategic machinery that currently constrains our national capabilities.

　　4. Building a Complete Machine Tool Supporting Industry Chain

　　Encourage and support units across the CNC machine tool and foundational manufacturing equipment industry chain—such as machine tool manufacturers, CNC system providers, and functional component suppliers—to forge long-term, stable strategic partnerships. Establish enduring collaborative relationships between CNC systems, functional components, and machine tool enterprises, ultimately building a comprehensive, integrated supply chain for CNC machine tools and essential manufacturing equipment.