China's equipment manufacturing industry is facing key challenges in achieving healthy development and technological self-reliance. According to Zhang Guobao, Deputy Director of the National Development and Reform Commission and head of the State Council’s Northeast Revitalization Office, the main issues are that core technology manufacturers cannot produce, first-time users do not adopt, and critical control systems remain weak. These problems were highlighted at a national meeting on major equipment autonomy held on August 28th.
Liaoning Province provided a detailed report on its progress and challenges in developing major equipment, while Li Ye, head of the State Council’s Industrial Group for Northeast Revitalization, chaired the event. Attendees included high-level officials from Liaoning, Jilin, and other provinces, as well as representatives from leading companies such as China National Nuclear Corporation (CNNC), China Southern Power Grid, and Harbin Electric.
The meeting marked the first large-scale experience-sharing session since the establishment of the Major Equipment Office under the National Development and Reform Commission. Zhang emphasized the urgency of enhancing China’s equipment manufacturing capabilities and fostering independent innovation. The Shenyang Municipal Government shared how it has reformed its management model and revitalized the old industrial area of Tiexi.
Several major enterprises presented their experiences in R&D of advanced technologies, while 21 companies, including State Grid and China Second Heavy Machinery, shared their initiatives in promoting self-innovation. Representatives from various provincial and municipal development commissions also attended, underscoring the national importance of this issue.
Zhang identified four major factors hindering the localization of major equipment. First, domestic manufacturers still lag behind global standards in R&D and production capabilities. For example, China’s pumped storage capacity remains far below international levels, limiting grid stability. Second, many state-owned enterprises face heavy historical burdens, with outdated systems and poor financial performance. Third, user companies often prefer foreign imports over domestic products, creating barriers for new, locally developed equipment. Finally, the policy environment lacks sufficient support, with import policies favoring complete units over components, which hinders local production.
To address these issues, the government has introduced new policies, including tax incentives for R&D, improved coordination mechanisms for technology absorption, and funding support for key projects. The state also aims to promote the first purchase of domestically produced equipment, establish risk-sharing insurance mechanisms, and ensure that at least 60% of equipment used in state-funded projects is made domestically.
These measures aim to strengthen China’s technological independence and drive sustainable growth in the equipment manufacturing sector.
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