This year's machinery industry growth rate is expected to be about 12%

Abstract Despite the challenging global economic environment and a sluggish market, the equipment manufacturing sector has shown remarkable resilience this year. From January to September, the high-end equipment manufacturing industry saw a 9.9% increase in value-added output, outpacing the national average industrial growth of 0.3%. Revenue reached 14.5 trillion yuan, up by 12.6%, while profits hit 924.3 billion yuan, reflecting a 13.39% year-on-year growth. Approximately 58% of product varieties experienced increased production, with automotive output and sales continuing to rise at double-digit rates. After over a decade of rapid development, China's power generation equipment, transmission systems, automobiles, tractors, machine tools, and construction machinery have achieved significant market presence. Ongoing maintenance, upgrades, and replacements will ensure steady demand. Enterprises in eastern regions are increasingly adopting automation, digitalization, and intelligent technologies—such as “machine substitution” and “robot replacement”—to boost productivity and offset rising labor costs. As a result, the demand for high-end equipment is expected to grow much faster than traditional mechanical products in the coming years. High-end equipment manufacturing is one of the seven key sectors identified in China’s "Twelfth Five-Year Plan" as part of its strategic emerging industries. Intelligent equipment plays a central role in this sector. As the industry transitions from an extensive model to a more efficient, technology-driven approach, Chinese equipment manufacturing is moving toward larger scale, higher efficiency, and greater precision. In recent years, the sector has made notable progress in technological upgrades, standardization, and brand development. However, it still faces significant challenges, particularly in advanced technologies. For instance, in areas such as laser cutting machines, heavy-duty hydraulic presses, and nuclear pressure vessels, Chinese companies lag behind global leaders in producing high-quality special steel and advanced medical equipment. Industry experts emphasize that the sector must shift toward innovation-driven growth, with enterprises taking the lead in research and development. Focusing on breakthroughs in critical technologies will be essential for moving up the value chain. At the same time, leveraging domestic market demand and accelerating the development of high-end equipment will be crucial for driving industrial upgrading and long-term competitiveness. With continued investment and strategic focus, China’s equipment manufacturing industry has the potential to close the gap and emerge as a global leader in the high-end manufacturing space.