The Research On The Industrial Security Of The Heavy Equipment Manufacturing Industry Of China

Along with the acceleration of economy globalization and integration, many countries around the world are paying close attention during their process of industrialization to the Industrial Security, which gradually has been regarded as the national economic target and is becoming more and more important for constituting the national policy of economic security. The Chinese central government has mapped out the policy to further promote and vitalize in an all-round way the equipment industry of the country and under this macro-background this dissertation studies the industrial security of the national heavy machinery industry which is of crucial importance to the national security and economy.Researches on industrial security in foreign countries mainly follow two routes, namely the industrial international competitiveness and the impact of foreign direct investment (FDI) on industrial security. Five categories of standpoints on industrial security have been formulated through the academic study by Chinese researchers, i.e. the viewpoints focusing on the controlling capability of the national industry, the viewpoints focusing on the national industry's international competitiveness, the viewpoints fousing on the economic rights and interests of the national industry, the viewpoints focusing on the foreign investment's influence and the resistant capability of the national industry, and the viewpoints on comprehensive industrial security. The explanation of reasons or the causes of industrial security problems can be found mostly in theories of foreign direct investment, institutional non-equilibrium, investment and trade liberalization and the theory of industrial structure.The research in this dissertation on the industrial security of Chinese heavy machinery industry follows the international competitiveness-oriented standpoint on industrial security with the basic understanding that the international competitiveness is the key factor at the core of industrial security. Therefore it is concluded that the basic even not the only way to safeguard the industrial security of a certain industry is to enhance its competitiveness. Factors influence the industrial competitiveness and industrial security may be categorized into external factors and internal factors. The external factors include foreign capital, foreign technologies and foreign products in an open economy and the internal factors mainly refer to the competition structure in the domestic market and a fine environment with the availability of financial support, production factors and market demand which enables an industry to survive. The economic model to analyze and evaluate the status of industrial security normally takes all factors possible into consideration in order to make the research more realistic and more valuable.To maintain the industrial security of the key national industry and further achieve the target of national economic security have been putting into the agenda as significant issues in many countries of the world, even in those developed countries of powerful international competitiveness. We therefore deem it quite necessary for the developing countries still at the stage of industrialization to actively take measures to safeguard the industrial security of their key industries of strategic significance. It should be of great value either theoretical or practical to select the heavy equipment manufacturing industry of China as the strategic one to have a close research on its industrial security by making full use of the existing industrial security theories achieved in both China and abroad.In a better way to study the industrial security of the heavy equipment manufacturing industry, the power generation equipment industry as one of the most important branch of heavy equipment manufacturing industry is selected as an example and as the basis for analysis and evaluation. Being provided with designing and manufacturing capabilities for hi-tech equipment of hydro power, thermal power, nuclear power, heavy gas turbine and wind power, China has already become the first largest manufacturing country for power generation equipment in the world several years ago. Solutions on the present status of industrial security and its international competition capability for power equipment manufacturing industry in China form the basic frame of this dissertation.The dissertation provides a systematic research on industrial security issues of China's heavy equipment manufacturing industry on the basis of analysis of power equipment manufacturing industry. This dissertation consists of three parts with 7 chapters:Part 1, including chapter 2, 3 and 4 summarizing the reseach achievement in China and abroad on the industrial security theories and industrial international competitiveness theories under the framework and guidance of industrial economics theory sets up the theoretical principle and basis of this dissertation.Part 2, i.e. chapter 5 presents a full picture of China's heavy equipment manufacturing industry and the power generation equipment manufacturing industry. Analysis on the characteristics of strategic industry is illustrated by the importance of the heavy equipment industry. A full analysis in detail from all aspects is carried out on the industry's scale, production capability, market structure, entrance and withdrawal barriers, extent of globalization and the domestic and world market potential. The advantages and disadvantages of China's heavy equipment industry are also included into this part. This part provides the basis for the empirical research on the industrial international competitiveness and industrial security of China's heavy equipment industry in Part 3.Part 3 include chapter 6 and 7 is the most important part of this dissertatioin. Following the international competitiveness-oriented standpoint on industrial security, Chapter 6 uses the widely recognized model to evaluate the international competitiveness of China's power generation equipment manufacturing industy in accordance with relevant theories of industrial competitiveness. The data from the results of the evaluation are directly used as the most important inputs in the comprehensive appraisal of the industrial security of China's power generation industry in Chapter 7 which brings out the conclusion of the research in this dissertatioin. The comprehensive appraisal is conducted on all the factors affecting the industrial security including such aspects as the domestic industrial survival and competition environment, the international competitiveness, the industrial controlling capability and the extent of industrial interdependence with foreign countries. The industrial security status of the power equipment manufacturing industry in China has been concluded in Chapter 7 while pointing out some of the key factors which are possible to affect the industrial security. This part also brings forward some advices and ideas for improving the international competition capability of power equipment industry in China in order to maintain the industrial security. The research concludes that China's heavy equipment manufacuturing industry, the power generation equipment manufacturing industry in particular is safe in general. Some of the key factors which are possible to affect the industrial security includes the monopoly of some key raw materials by foreign companies, weak ability for technical innovations, disadvantages of brand competitiveness, weak service capability etc..Through the research in this dissertation the writer attempts to make certain innovations at research object, research method and research conclusions.Regarding the research object, there are few researches on China's heavy equipment manufacturing industry. The research in this dissertation from the perspective of industrial security is claimed as the first one ever had before and therefore it deserves important theoretical and realistic meanings.Regarding the research methodology, the dissertation adopts quantitative way analysis involving tremendous data at the latest in both China and abroad in order to make the research and its conclusion more persuasive. Comparative and contrast analysis is widely used in the research to evaluate the competitiveness and the industrial security of China's power generation equipment industry so as to find out the differences or the advantages and disadvantages of the industry.Some worthy conclusions is drawn out on the future development of China's heavy equipment manufacturing industry:1, To improve the industrial international competitiveness is a fundamental way to realize the positive and continuous development of an industry. The key factor determines the status of industrial security is the ompetitiveness of the industry.2, The heavy equipment manufacturing industry in China is generally safe but safety extent approaching to the bottom limit of evaluation data. Therefore there still exist potential key factors causing industrial security problems.3.Although the heavy equipment industry in China has stronger industry controlling force towards open economy, such potential problems for industrial security still exist due to the existence of foreign capital merger because the main Chinese companies in this area have been listed in Hongkong stock market.4. Acquisition and merger of foreign research and development organization is an important approach on improving the innovative capability of self-development technology of China's heavy equipment industry.5. Further promotions on international operation of an industry should be considered, including the implementation of the strategies like expanding products export, technology export and transferring partial manufacturing output to foreign countries, which is a necessary demand for maintaining the industrial security and realizing sustainable development of China's heavy equipment industry.