China Machine Tool Industry Report, 2007

1.1 Global Machine Tool Industry Grow steadily and China Machine Tool Industry is of

Great Potentials in Growth..................................................................................3

1.2 China Machine Tool Industry Ranks First in the World in Consumption .................6

1.3 Export Takes a Larger Proportion in Production but Needs to be Further Explored..7

1.4 Developing Trend of Machine Tool Industry ......................................................8

1.4.1 Analysis of Industry Concentration Degree ..............................................8

1.4.2 Lower-end Machine Tool Production is Transferred into Developing Countries 9

1.4.3 Machine Tool Enterprises Take More Focus on Service ...............................9

2.1 Development Sees a Good Momentum.......................................................... 10

2.2 Machine Tool Exports Keep a Rapid Growth.................................................... 10

Machine Tool Countries.......................................................................................... 13

3.1 Machine Tool Industry is the Basis of Economic Safety and National Defense Security

.................................................................................................................... 13

3.2 Development History of China’s Machine Tool Industry .................................... 13

3.3 Inspiration from Global Powerful Machine Tool Countries.................................. 13

4.1 Supports of New Policies............................................................................. 15

4.2 China is in the Middle Period of Heavy/Chemical Industry ................................ 16

4.3 Technical Innovations are the Foundation of Substituting Imports ..................... 17

4.4 Credit of Clients to Home-made Machine Tools Gets Improved.......................... 19

5.1 Domestic Strong Demands Drive Machine Tool Consumption Increasing Steadily. 20

5.1.1 Downstream Industries Level Off ......................................................... 21

5.1.2 Equipments are Upgraded Frequently and Demands for CNC Machine Tools

Leap........................................................................................................ 23

5.2 Revenue Grows Faster than Consumption and Import Replacement is the Key .... 23

5.3 Recombination and M & A Make Competitive Enterprises ................................. 25