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The situation at home and abroad is pressing, and Chinese companies that are not bad have one after another overseas acquisitions. They want to quickly acquire advanced technologies and enhance their influence. At the beginning of 2016, China National Chemicals purchased German plastics equipment manufacturer KraussMaffei Group for EUR 925 million (1 EUR approximately RMB 7.36 – Bennett Note). Haier spent USD 5.4 billion to purchase GE's home appliance business; not long ago , China's home appliance company Midea Group put forward more than 4 billion euros of acquisitions to German robot manufacturer KUKA in order to introduce the world's most advanced industrial robot technology.
The transformation and upgrading of Chinese companies are in high spirits. Overseas mergers and acquisitions are considered to be a shortcut to acquire technology. However, this idea is only wishful thinking.
According to the report, on the 23rd, officials from the National Development and Reform Commission, China Machinery Industry Federation, and the China Quality Association and other manufacturing companies, including China’s home appliance company Gree Electric, jointly appealed at the Second China Manufacturing Summit Forum. Through independent innovation, mastering core technologies and improving quality, “Let the world fall in love with Chinaâ€.
Zhang Gang, a counselor of the State Council, recommends that Chinese companies conduct innovations in four areas, including technology and highlighting consumer-centric quality management, and change the status quo of Chinese products relying on quality to win the international market. Zhang Gang said that the unit price of China's export commodities is not only lower than that of developed countries, but also lower than the world average. Taking 2013 as an example, he said that nearly 80% of China's merchandise wins competition with its price advantage, while in developed countries such as Germany and Japan, the proportion of quality advantage winning competition is as high as 56% or even 65%.
According to the report, Liu Baicheng, academician of the Chinese Academy of Engineering, spoke of the status quo of Chinese manufacturing, stressing that the “four foundations†of key basic materials, core basic components, advanced basic processes, and industrial technology foundations are not solid, and have become a constraint on Chinese industries from becoming stronger and stronger. The bottleneck of independent innovation capability.
He said that 70% to 80% of high-end CNC machine tools still rely heavily on imports. 90% of CNC systems supported by high-end CNC machine tools are imported. High-end robots depend on imports. Precision reducers, servo motors and controllers are required for domestic robots. The core parts and components are mostly purchased directly from foreign products.
Regarding the C919 civilian aircraft with independent intellectual property rights, Liu Baicheng said that the aircraft's engine is imported.
However, some people think that independent innovation is not necessarily original. Professor Liu Weiwei of the Central University of Finance and Economics who attended the forum dialogue on the 23rd pointed out that innovation is not only a success of the research and development of new scientific and technological achievements, but also includes a combination of existing technological innovations. She believes that the core technology of the Apple iPhone is an innovative collection. The same is true for cars, cars are designed, parts can be purchased globally, and a smart entrepreneur will choose the best products in the world.
According to the plan of the Chinese government, China's products will be freed from inferior quality labels in 2025 and enter the world's manufacturing powerhouse. Only a short period of time away from this goal is less than a decade. At the moment, high domestic production costs, overcapacity, and traditional advantages are gradually disappearing. High-end manufacturing is returning to developed countries and low-end countries are turning to lower-cost countries.