The impact of further implementation of ECFA on the flat grinding market

The "Framework Agreement on Cross-Strait Economic Cooperation" (ECFA) has come into effect this year. From January 1st, 37 kinds of machine tool tools including CNC surface grinders have started to reduce taxes and are divided into three stages within two years. Reduce the tariff to zero. In this regard, the industry is also...

The Cross-Strait Economic Cooperation Framework Agreement (ECFA) has officially entered into force this year. From January 1st, 37 types of machine tool tools including CNC surface grinders have begun to reduce taxes and will be divided into three phases within two years. The tariff has dropped to zero. In this regard, the industry also believes that this is equivalent to opening the door to Taiwan to sell machine tools to the mainland, the impact on the mainland machine tool industry "can not be underestimated." Indeed, the impact and impact of Taiwan's machine tools on our mainland machine tool industry is quite large for the surface grinder manufacturing industry, and its experience is also the deepest.

In the current Taiwanese and mainland machine tool trading pattern, the one-way flow from east to west is presented, and almost all Taiwanese machine tools flow to the mainland. Of course, the reasons are self-evident, mainly:

(1) The production level of the Taiwanese machine tool itself is relatively high, and the variety is complete, especially compared with foreign machine tools, the price is competitive.

(2) Complete accessories and good quality.

(3) Taiwan is a small area, and its own industry cannot digest so many machine tools.

(4) In recent years, the industry has moved outwards, and the mainland on the west coast of the Straits is in a period of rapid development, requiring a large amount of equipment. The implementation of ECFA will further accelerate the flow of Taiwanese machine tools to the mainland, which is self-evident.

In the past 20 years, with the warming of cross-strait relations and the close development of economic cooperation, Taiwan's machine tool manufacturing industry has entered the mainland market in a big way, and has formed many competitive enterprise groups. In particular, the flat grinding manufacturing industry is one of the deepest areas in which Taiwanese investment is involved, and it is the largest area except for machining centers. Taiwan's almost all brands of surface grinder manufacturing plants have established production bases in the mainland, especially in the Yangtze River Delta and the Pearl River Delta. Under the guise of mainland China's preferential policies for Taiwan, the implementation of product localization strategy. Among them, the more important ones are Jiande, Fuyu, Shangyi, Zhongcheng, Yuqing and so on. Particularly striking is the Zhejiang Rongde Machine Tool Plant established by Taiwan Jiande Company in Xiaoshan District, Hangzhou. In the past 20 years, it has manufactured and sold nearly 20,000 sets of flat grinding in the mainland. The output is large and the sales are far more than Many grinding machine manufacturers in mainland China. Zhejiang Rongde's low-cost conventional flat grinding is even lower than the M7130 and M7120, the two most sold varieties in the mainland, with strong market competitiveness, filling the market share of the original mainland machine tool enterprise, greatly reducing the mainland enterprises. Market share.

Another well-known grinding machine factory in Taiwan, Fuyu Company, established Shanghai Weiyang Precision Machinery in Jiading, Shanghai. It mainly produces medium-level CNC flat grinding, with a high proportion of export and strong competitive strength. Under the extrusion of similar homogeneous products of Taiwanese capital, the original continental grinding machine enterprises have indeed suffered a great impact. In the low-end and flat-end market where domestic-funded enterprises are better at, the Taiwan-based machine tools occupy half of the country, forming a severe competitive situation. Taking manual flat grinding as an example, various Taiwanese-funded products of genuine and miscellaneous brands have become popular, occupying a relatively high market share. The original brand manual grinding in mainland China has gradually been marginalized and even squeezed out of the market. The mainland surface grinder manufacturing enterprise has effectively learned the impact of Taiwanese machine tools.

A noteworthy trend is that Taiwan's machine tool companies are seeking to invest in factories with powerful machine tools such as Germany and Japan, and their cooperation products will be able to enter the mainland market under the conditions of ECFA tariff preferences. Businesses have a greater impact. In this regard, the mainland authorities should be prepared and restrained in order to prevent a greater negative impact.

With the further implementation of ECFA, zero tariff means that the price of Taiwan's machine tools will be further reduced. In particular, CNC flat grinding and forming grinding will significantly enhance the competitiveness and stride across the Straits.

As the saying goes, the mall is the battlefield, and the flesh and blood can't replace the market competition. Therefore, for mainland enterprises, they will face a more aggressive competitive situation, which is a very real problem. Therefore, the next round will definitely bring us strong rivals and competition. The machine tools involved will develop from low-end to mid-to-high-end machine tools, especially in the field of CNC powerful forming grinding machines. In this regard, we should pay close attention.

Continental machine tool companies should also see that ECFA zero tariffs will also bring certain benefits to mainland enterprises. Taiwan has better machine tool parts, such as ball screws, linear rolling guides, hydraulic devices, indexing devices, numerical control devices, etc. Etc. After the implementation of zero tariffs, the price of machine parts will drop significantly, which is very beneficial for mainland machine tool companies to reduce the cost of parts procurement. But it is no small impact on mainland functional component manufacturers. Through the cooperation between the two parties, we will improve the manufacturing level of the whole machine, expand the export to the outside world, and create a win-win situation for both sides. In this regard, we are optimistic.

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