The third import substitution wave will benefit from high-end CNC machine tools

Abstract Sino-US trade frictions have intensified, and ZTE's embargo has raised expectations for localization in key areas. According to the agency's report, China's import substitution has experienced two leaps. Under the combined effect of domestic and foreign factors, China will usher in the third round of import substitution. It is expected that technology-intensive industries will become this...

Sino-US trade frictions have intensified, and ZTEâ€™s embargo has raised expectations for localization in key areas. According to the agency's report, China's import substitution has experienced two leaps. Under the combined effect of domestic and foreign factors, China will usher in the third round of import substitution. It is expected that technology-intensive industries will become the main battlefield for this import substitution. Among them, CNC machine tools (CNC) is a key technology for advanced manufacturing, and it is one of the major areas where breakthroughs are needed.

For a long time, domestic CNC machine tools have been rapidly expanding at low levels, slow progress in mid-range, and high-end imports. The high-end CNC system and functional components of CNC machine tools still rely mainly on imports. For the whole CNC machine tool industry, especially the high-end CNC machine tool industry with high technical barriers, import substitution has become the goal of domestic enterprise development. The data shows that in the popular CNC machine tools, although the localization rate is about 70%, in the high-end CNC machine tools, domestic products only account for 2%. In 2016, the scale of China's CNC machine tool market has reached 186.2 billion yuan, and the domestic replacement space is huge.

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