Equipment application "chicken and egg" puzzle
In recent years, driven by the country's efforts to revitalize the equipment manufacturing sector and promote the localization of major machinery, progress has been made. However, the momentum remains insufficient. The lack of clear policies and concrete measures continues to hinder development, and key challenges—such as trust between manufacturers and users—have yet to be effectively addressed.
From my observations, there is a noticeable mismatch in attitudes between the equipment industry and end-users. On one side, users are hesitant to invest in domestically produced equipment due to concerns about its track record and reliability. They often prefer to spend more on foreign technology, which they perceive as safer and more advanced. On the other hand, manufacturers argue that without real-world use, it’s impossible to prove the quality and performance of their products. This creates a stalemate: neither side is willing to take the first step, resulting in a cycle of mutual doubt.
This situation reminds me of the age-old question: “Which came first, the chicken or the egg?†While this debate is purely theoretical, the current challenge in equipment localization seems to have fallen into a similar paradox. Equipment procurement is a high-stakes decision, involving significant financial investment and long-term implications for project success and production efficiency. As such, caution is understandable—but relying heavily on imported equipment over the long term is not sustainable.
In fact, China's equipment manufacturing industry has made remarkable progress in recent years, narrowing the gap with developed nations in many areas. Choosing cost-effective domestic alternatives is not necessarily a failure; it can be a smart and strategic move. Unfortunately, some companies still hold strong biases against local equipment, prioritizing the latest foreign technology over practical, cost-effective solutions.
So how do we break this cycle? If the supply and demand sides remain disconnected, what is needed is a bridge—an intervention that can align their interests. In my view, government policies and supportive measures are the most effective tools. However, if left unchecked, the domestic equipment industry may gradually decline, ultimately harming both users and the broader sector. A forced push for localization without proper support could also backfire, creating more problems than it solves.
The direction for China’s major equipment industry is becoming clearer, even if the exact path is still under discussion. One thing is certain: policies promoting localization, especially for the first set of domestic equipment, must be given equal attention and encouragement. Both incentives and guidance are necessary.
In this context, user companies should move beyond short-term thinking and preconceived biases. They need to evaluate localization from a broader, more strategic perspective—considering long-term national interests and industry development. At the same time, equipment manufacturers must take initiative, addressing user concerns about quality, reliability, delivery, and after-sales service. By proving the value of domestic equipment through real results, they can shift perceptions and build trust.
Only when both sides work together can the “chicken and egg†dilemma be resolved. Instead of remaining stuck in a cycle of hesitation, they can enter a virtuous loop where localized equipment leads to better performance, and improved performance encourages further adoption. This mutual reinforcement will ultimately benefit the entire industry and ensure sustainable growth.
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