Numerical control machine tools are the mainstream products in the machine tool industry. Driven by demand, the production of CNC machine tools in China has maintained high-speed growth. The average annual compound growth rate of China's CNC machine tool production in the past 5 years was 37.39%, the average annual compound growth rate in the past 10 years was 29.94%, and the compound growth rate in the past 15 years was 22.10%. In 2010, the consumption of CNC machine tools will exceed 6 billion US dollars, and the number of units will exceed 100000. CNC machine tools have become the mainstream of machine tool consumption, and China's future CNC machine tool market is huge.

1. China's CNC machine tool industry is currently in a period of strategic development
The key focus of economic development in the Eleventh Five Year Plan is to achieve a transformation in the mode of economic growth. Advanced manufacturing is the direction for the transformation of traditional manufacturing industries, and the technological transformation of traditional industries such as automobiles, machinery, home appliances, textiles, agricultural machinery, and environmental protection continues to increase the demand for CNC machine tools; The development of high-tech industries such as electronic information, biotechnology, and new energy and materials has opened up new demands for precision, efficient, and specialized CNC machine tools; From the perspective of regional development, the upgrading of industries in eastern China, the revitalization of old industrial bases such as Northeast China, and the accelerated development of central and western regions provide a domestic market for the development of the CNC machine tool industry; Economic globalization, the transfer of international capital and industries to China, the exchange of international technology and talent, and the strong development of China's international trade have provided an external environment for the development of China's CNC machine tool industry, putting us in a rare period of strategic development.

The national policy of revitalizing the equipment manufacturing industry ensures a high safety margin for the industry
Since the beginning of the 11th Five Year Plan period, the country has successively issued the "Several Opinions on Accelerating the Revitalization of Equipment Manufacturing Industry" and the "National Medium - and Long Term Science and Technology Development Plan"; In 2009, in response to the impact of the international financial crisis, the State Council issued the "National Equipment Manufacturing Industry Revitalization Plan". Under the national policy of revitalizing the equipment manufacturing industry, the country has introduced a series of policies to vigorously support the industry. Industrial policies, import and export policies, and tax policies have greatly promoted the sustained and rapid development of the machine tool industry in recent years. Among them, tax preferential policies have brought benefits to enterprises, greatly increasing their profits. The strong support of policies has given the industry special advantages, ensuring to some extent the rapid development and high safety margin of the industry.

3. China's CNC machine tool industry is an emerging strategic industry that is supported by the state and promotes economic structural transformation.
On September 8, 2010, the State Council held an executive meeting to review and approve in principle the "Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries". The seven industries of high-end equipment manufacturing, energy conservation and environmental protection, new generation information technology, biology, new energy, new materials, and new energy vehicles will be focused on accelerating their development, and the country will strengthen policy support in finance, taxation, and other areas. Feng Fei, Minister of the Industry Department of the Development Research Center of the State Council, predicts that the next decade will be a decade of vigorous development for strategic emerging industries. By 2020, the proportion of strategic emerging industries in industrial added value is expected to reach over 20%.

4. China's CNC machine tool industry is currently in a period of rising industry prosperity
The demand for CNC machine tools comes from the downstream machinery industry's fixed assets investment. Since 2004, the production capacity of automobile and parts, aerospace equipment, high-speed trains, military industry, electronic information, electrical equipment, ships, engineering machinery, molds and other industries has expanded rapidly, driving the rapid growth of machine tool consumption. Driven by the national revitalization of equipment manufacturing industry and international industrial transfer, the growth rate of investment in equipment and tool procurement in China will continue to maintain around 20% in the next 5-10 years, and the demand for the machine tool industry will continue to grow rapidly.

5. The changes in the pattern of the machine tool industry are relatively slow
The machine tool industry, due to its high technological content and process requirements, is a technology and capital intensive industry with high barriers to entry. Whether domestically or globally, the industry landscape changes relatively slowly.

6. Machine tools are closely related to fixed assets investment in downstream industries
Machine tools belong to the machinery industry, which is closely related to fixed assets investment in downstream industries. In the downstream industry, about 60% of the annual fixed assets investment is used to purchase machinery products. The proportion of equipment and tools purchase in fixed assets investment remains around 20% and remains stable for a long time. Therefore, in the downstream industry of the machine tool industry, the main part of fixed assets investment is used to purchase equipment manufacturing tools - machine tools. Statistics show that the growth rate of fixed assets investment in the downstream industry of machine tools is far faster than the average growth rate of the whole society.

China is currently in a period of heavy industrialization, and the Chinese CNC machine tool industry can transcend short-term economic fluctuations
At present, China is in the period of heavy industrialization, which is a factor that transcends short-term economic fluctuations and has had a huge impact on the Chinese economy in recent decades. It has also played a promoting role in the development of China's machinery industry. It, like the long-term positive macroeconomic situation in China, has become a good annotation of the sustained and rapid development of the machinery industry in the past 30 years. The so-called period of heavy industrialization, also known as the middle stage of industrialization, gradually shifted from solving shortages through opening up to building an economic powerhouse. A group of high growth industries based on heavy industry, such as coal, automobiles, steel, real estate, building materials, machinery, electronics, and chemicals, have shown strong development momentum, forming a huge demand for the machine tool market, especially CNC machine tools. China has surpassed Germany to become the world's largest machine tool market. Numerical control machine tools have become the mainstream of machine tool consumption. It is expected that the consumption of CNC machine tools will still exceed 6 billion US dollars and the number of units will exceed 100000 in 2015. Among them, the proportion of mid to high end CNC machine tools will increase significantly, while the proportion of economical CNC machine tools will not change much, and the demand for non CNC ordinary machine tools will decrease significantly.