China's Electric Power Equipment Industry Opens to an Internationalized Age

Introduction: China's electric power equipment is one of the most internationally competitive products. Recently, 10 ministries and commissions jointly issued the "Guidelines for Promoting the Internationalization of Strategic Emerging Industries." It shows that it does not simply support 'going out', but is combined with 'bringing in' to achieve a true internationalization. This policy is even more favourable for China's power equipment manufacturers than it is for "giving the cake" rather than "serving in the snow."

Recently, 10 ministries and commissions including the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Science and Technology jointly issued the "Guiding Opinions on Promoting the International Development of Strategic Emerging Industries" (hereinafter referred to as the "Guiding Opinions"), identifying for the first time emerging strategic industries such as high-end equipment manufacturing industries. The focus of international advancement. The Chinese power equipment industry, which has significantly increased its technological level due to the construction of UHV, will probably start a new era of internationalization.

The new policy supports all aspects of internationalization. Zhao Yongzhi, general manager of Shandong Electric Power Equipment Co., Ltd. of China Electric Power Equipment Co., Ltd., was very excited when he saw this "Guiding Opinion." “It is very forward-looking.” He said with joy. “Guiding opinions encourage high-end equipment manufacturing to make full use of global innovation resources, carry out various forms of R&D cooperation, and enhance innovation capabilities. This shows that it does not simply support 'going out', but It is combined with 'Introduction' to achieve a true internationalization."

Ma Bin, general manager of Nantong Shenma Power Co., Ltd., also believes: “The 10 ministries timely proposed the goal of internationalization of advanced power equipment, which will help China’s advanced power equipment emerge faster in the international arena.”

According to experts, the internationalization proposed by the “Guidance Opinion” is no longer simply to sell domestically produced products abroad, but to improve the international level of R&D, manufacturing, marketing, and other aspects, and to enhance the competitiveness of the entire industry chain. Internationalization not only expands the company's sales channels to foreign countries, but also enhances the international adaptability of talents, companies, industrial alliances, and innovation bases. Obviously, the ultimate direction of the "Guidance Opinion" is to cultivate the international competitiveness of domestic enterprises.

Yong Zhi stated that in order to realize the transition from "Made in China" to "Created in China," we must master the core technology of independent intellectual property rights. In recent years, although the design level and manufacturing level of China's power equipment have been greatly improved and it has received international recognition, it still lags behind the world's advanced level in terms of cutting-edge research, standards construction, and innovation capabilities. The introduction of the "Guidance Opinion" undoubtedly pointed out to power equipment manufacturers a path to enhance innovation and enhance competitiveness. Therefore, Chinese companies should actively integrate into the global market with a humble attitude and improve their core competitiveness.

Internationalization is a long way to go China's electric power equipment is one of the most internationally competitive products. Therefore, this policy is more likely for China's power equipment manufacturers to "get icing on the cake" rather than "send in the snow."

According to Zhuang Yu, deputy general manager of Shenma Power, Shenma's products have been sold to dozens of countries in five continents of the world and reached cooperation with more than 80% of well-known power transmission and transformation equipment manufacturers. The global sales network has basically taken shape. According to the data provided by Shandong Electric Power Equipment Co., Ltd., the company has now signed an international order of more than 310 large-scale power transformers with a total capacity of 46 million kVA and a contract value of approximately US$350 million, of which international orders in 2010 accounted for corporate orders for the year. 57% of the total.

Liu Meikun, former vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said: "Overall, China's power equipment exports have continued to grow steadily and steadily in recent years, and the speed of development has shown a leap-forward and ultra-conventional character." The reason why power equipment is developing so fast is that The previous state’s policies, the spillover effect of upgrading equipment technology and the internationalization strategy of the State Grid Corporation are inextricably linked.

It is reported that since our country put forward the strategy of “going out” in 1999, governments at all levels have given full attention and strong support to the internationalization of enterprises. The relevant person in charge of the TBEA Hengchang Company stated that the country’s export tax rebate policy, new product export fund support policy, and government subsidy policies all increase the confidence of companies “going out” and reduce the risk of “going out”. The more important reason is that the construction of UHV has promoted the spillover effect of power equipment technology to be more obvious, which has promoted the upgrading of China's power equipment manufacturing industry, and achieved "China-made" and "China-led."

“This historic transformation has expanded the international market for Chinese products and boosted the confidence of the national manufacturing industry. With the promotion and application of UHV technology in the world, China’s power equipment will have stronger competition in the international market. Force.” Zhao Yongzhi commented.

Although China's electric power equipment "going out" has achieved remarkable results, if judged according to the requirements set forth in the guidelines, its "internationalization" level is still not high. Most companies basically stay at the level of "marketing internationalization," but there are still many shortages in terms of "brand internationalization" and "technology internationalization."

The “Guidance Opinions” put forward to build a demonstration base for internationalization and nurture international leading enterprises is actually “brand internationalization”. At present, China's power equipment products and ABB, Siemens and other international giants of overseas competition still remain at the stage of low-cost victory, brand reputation is not high. Only by enhancing the internationalization of the brand can we truly realize internationalization.

The "Guidance Opinions" to encourage the introduction of technology and cooperation in research and development, participate in the development of international standards and promote international mutual recognition, is the "technology internationalization" problem. Still taking ABB, Siemens as an example, its R&D institutions are all over the world, and R&D personnel are from various countries. Global wisdom is a strategy that I use. It is worth exploring in depth by Chinese power equipment manufacturers.

Needless to say, with the continuous improvement of China’s national strength and the ever-increasing influence, it is inevitable to have a wider and deeper level of international exchange. The achievement of China’s international influence is manifested both at the cultural level and at the economic and technical level. From this perspective, the power equipment manufacturing industry as a representative of China's advanced manufacturing industry, the internationalization of a long way to go.