Equipment manufacturing industry policy recommendations

1, strengthen the organization and leadership of equipment localization. Establishment of major projects and equipment localization of the organization and coordination mechanism, through major projects to drive the development of equipment manufacturing industry.

2, to further establish and improve the market mechanism, conscientiously implement the bidding law and other laws and regulations to promote domestic equipment into the market. Encourage fair competition among equipment enterprises, the development of specialized collaboration, and promote enterprises to speed up the pace of reform and improve the management level and competitiveness.

3, insist on relying on key projects and major projects to promote equipment localization. Planned organization of a number of major technical equipment localization projects, such as one million kilowatts of nuclear power equipment, DC power transmission equipment, large-scale petrochemical equipment, large-scale digging construction equipment, high-grade CNC machine tools.

4, grasp the research and development of policies and regulations for the development of the equipment industry to create a favorable environment. First, the localization of major equipment research and development, the establishment of engineering and technology research centers to give the necessary support for the funding; second is to study and formulate the relevant policies and regulations to promote the development of the equipment industry, such as adjusting the current tax policy on imports, change the import of complete sets of equipment and import key raw materials, parts and components tax-free; improve the procurement of technology and equipment from abroad, and adhere to the market for technology; third is to formulate Encourage the use of domestically produced equipment policy, especially for the first set of equipment for the localization of relying on the project, to give the necessary policy support.

5, cultivate large enterprises, enterprise groups of technological innovation and core competitiveness. Large enterprises, enterprise groups in the development of equipment manufacturing industry plays an important role in the foundation and drive. Therefore, should continue to encourage and support large enterprises, enterprise groups to establish technology centers, enhance technological innovation capacity. Continue to encourage and support large enterprises and enterprise groups to participate in the construction of national key projects. The equipment industry revitalization plan led by the National Development and Reform Commission and the Ministry of Industry and Information Technology has entered the review stage.

At the end of December 2008, the Ministry of Industry and Information Technology (MIIT) organized experts to conduct a preliminary review of the equipment industry revitalization plan. According to one of the experts involved in the review, the content of the plan has basically been completed and may be submitted to the State Council.

The development of equipment industry revitalization plan includes equipment manufacturing, medical, textile and other livelihood-related industries, agricultural machinery, basic parts and components of the four major areas. This is also the past has been ignored in the field of basic parts and components for the first time to be included in the field of support for development. As early as 2006, the State Council has announced a plan to revitalize the equipment manufacturing industry, the plan clearly put forward to encourage the development of the field. But since then, many domestic large-scale projects are still reluctant to use domestic equipment and products, this problem is particularly prominent in the field of basic components.

"How many years, the country has been less attention to basic parts and components of the investment. Because this small equipment can not be seen, so the funds invested in scientific research and related topics have been very little." The above experts said. And the lack of investment has also brought about a vicious cycle of backwardness of the industry level.

Taking train bearings as an example, according to him, at present, the domestic train bearings with a speed of 160 kilometers per hour or less can be localized. And 160 to 200 kilometers per hour train bearings, although the domestic production, but the relevant departments do not purchase domestic products. Speed of 200 kilometers per hour above the required train bearings, all from imports. Therefore, at present, the domestic still can not achieve localization of rolling stock bearings. "At present, most people consider more encouragement to enterprises through funds and direct subsidies from the central government. But the relevant departments should realize that it is more effective to encourage enterprise development through tax reform."

The value-added tax (VAT) transition, which began in China on Jan. 1, 2009, is a great encouragement to the domestic equipment industry, but because it is a universal policy, no matter whether it is a high-, medium- or low-grade equipment, can benefit from it, and thus the boost to industrial upgrading is relatively limited.

In the Ministry of Industry and Information Technology in the organization of the equipment manufacturing industry to revitalize the planning process of evaluation and demonstration of experts have proposed that we should take this opportunity to purchase energy-saving and environmental protection, technological upgrading and other equipment, enterprises, to give a certain amount of tax incentives. This will be a very good news for the transformation of China's equipment industry. However, how to operate in terms of subsidies and support is still the revitalization plan needs to be improved.

Most people are thinking more about encouraging enterprises through funds and direct subsidies from the central government. But the relevant departments should realize that encouraging enterprise development through tax reform is more effective, tax as an after-the-fact subsidies, for encouraging enterprises to invest in equipment has greater support. Not only that, tax incentives as long as the enterprise does will benefit, from this point of view, for all business subjects will be more equitable.