Distinguished guests, ladies and gentlemen,
Good morning!

April’s capital—soft winds, gold willows kiss cheeks as spring’s reign unfurls.

On the eve of the 19th China International Machine Tool Show (CIMT2025), we gather here at the newly built Beijing Shunyi • Capital International Exhibition & Convention Center to discuss the development landscape facing the global machine tool industry and its impact on technology and industrial ecosystems. On behalf of the China Machine Tool & Tool Builders’ Association, I extend a warm welcome to all of you!

Taking this opportunity, I would like to share three perspectives for our collective discussion.

Ⅰ. The mutual achievement and win-win development between China's manufacturing industry and the global & Chinese Machine Tool Industry

As the "mother machine" of manufacturing, the machine tool industry serves as the cornerstone of the manufacturing industry. Its development level is a key indicator of a nation's industrialization, and its technological capabilities directly influence the competitiveness of a country's manufacturing industry. It is the core support for high-quality manufacturing development and the pivotal hub and commanding height of a modern industrial system.

In 2024, China's manufacturing value-added reached nearly 34 trillion RMB, maintaining its position as the global largest for over a decade. This has provided strong demand-driven momentum for the growth of the machine tool industry. According to statistics from foreign institutions, China accounted for 32.5% of global machine tool consumption and 32.1% of global production in 2023. As the world's largest machine tool manufacturer and consumer market, China's vast market size has significantly propelled the machine tool industry. It has not only driven technological upgrades and structural optimization in China's domestic industry but also injected robust momentum into the collaborative development of the global machine tool sector. The Chinese market has contributed a substantial share and strength to the growth of the global machine tool industry.

Looking back over the past 40 years of the global machine tool industry's development, the driving role of the Chinese market has been particularly prominent. Taking the automotive manufacturing industry as an example, China's automobile production and sales were around 2.3 million units in 2000 but grew to 31 million units by 2024. The diverse array of production equipment in the processing and assembly workshops of Chinese automotive factories stands as vivid evidence of the rapid development of the global machine tool industry. Similarly, industries like 3C electronics and new energy vehicles have not only spurred the growth of the global machine tool industry but also catalyzed the advancement and expansion of China's domestic machine tool sector. The rise of a new generation of machine tool manufacturers is closely tied to these industries.

The influence and appeal of CIMT today are not only a testament to the development journey of the world's largest manufacturing nation but also a historical microcosm of the growth of China's machine tool industry.

Ⅱ. China's manufacturing and machine tool industry enter a critical development phase, poised to profoundly influence the restructuring of the global machine tool industry chain

Currently, economic globalization and trade are undergoing profound transformations. The resurgence of "de-globalization" sentiments, escalating geopolitical conflicts, and rising technological barriers, among other intertwined factors, have led to the reshaping of global supply chains, fragmented trade rules, and significantly increased uncertainty. Supply chain resilience and industrial chain security have become focal points, while the balance between globalization and localization is increasingly influenced by geopolitics and value-based considerations. Some time ago, influenced by multiple factors, China witnessed a phenomenon where some high-end manufacturing moved back to Europe and the U.S., while low-end manufacturing shifted to developing countries. However, statistical surveys from relevant institutions indicate that, constrained by factors such as industrial and supply chains, the results of this relocation have fallen short of expectations. Recently, the U.S. government's reciprocal tariff policies have further heightened concerns about the prospects of global economic integration and the risk of recession.

The Chinese government is committed to providing the world economy with the greatest certainty. As Premier Li Qiang mentioned at the "1+10" dialogue with heads of 10 major international economic organizations on December 9, 2024, the underlying logic of China's upward and improving economic trajectory remains unchanged, as does its commitment to benefiting the world. This is the greatest certainty China's economy offers to the global economy. This year, the Chinese government's work report identified vigorously stimulating consumption, improving investment efficiency, and comprehensively expanding domestic demand as the top priority for 2025. As the world's second-largest consumer market, with a population of over 1.4 billion and the largest middle-income group globally, China holds immense potential for investment and consumption. Macro data shows that China's annual consumption exceeds 50 trillion RMB, investment surpasses 50 trillion RMB, and imports of goods and services exceed 20 trillion RMB. Such massive demand is more than sufficient to sustain its position as the world's largest manufacturing nation.

Currently, China's economy has entered a phase of high-quality development, with accelerated transitions toward green, digital, and intelligent transformation. The modern industrial system, centered on and supported by advanced manufacturing, is striving to ascend the global industrial and value chains. Whether in aerospace, automotive manufacturing, precision electronics and instruments, or new energy equipment, breakthroughs and iterations in machine tool technology are indispensable. The transformation and upgrading of China's manufacturing industry present the ideal application scenario for the new wave of technological revolution and industrial transformation, offering rare opportunities for both the global and Chinese machine tool industry.

With the deepening of China's unified national market development, the government has implemented policies to promote a new round of large-scale equipment upgrades and consumer goods replacement (referred to as the "Two New" initiatives), as well as national major strategies and key projects to enhance security capabilities (the "Two Major" initiatives). These measures, along with more proactive fiscal policies and appropriately accommodative monetary policies, provide fundamental support for stabilizing expectations. Additionally, observing recent trends in the capital market, there has been a sustained increase in attention and investment in the industrial "mother machine" industry, particularly the machine tool industry. Investors recognize that the demand scale of the world's largest manufacturing nation provides the necessary conditions and foundational support for the sustainable development of the machine tool industry, leaving no reason to doubt its growth prospects.

In summary, China is poised to play an increasingly positive role in the evolving landscape of the global machine tool industry.

Ⅲ. With the advancement of high-level opening-up, changes in the Chinese market will continue to create opportunities for the development of both the global and Chinese machine tool industries.

During a meeting with representatives of the international business community on March 28, the General Secretary Xi Jinping solemnly reaffirmed that China remains unwavering in its commitment to reform and opening-up, that its doors will only open wider, and that its policies on utilizing foreign investment have not and will not change.

Opening-up is a fundamental national policy of China. The country is advancing high-level opening-up, steadily expanding institutional openness in rules, regulations, management, and standards. The world today is undergoing profound changes unseen in a century, with global economic integration, the multilateral trading system, and global industrial and supply chains facing severe challenges. The Chinese government is actively committed to upholding rules and order, striving to embrace the world with open arms, and expanding the "pie" of shared development through open cooperation and technological progress.

In recent years, the Chinese government has focused on nurturing and expanding emerging and future industries, launching large-scale demonstration initiatives for new technologies, products, and applications, and promoting the safe and healthy development of emerging sectors such as commercial aerospace, low-altitude economy, and deep-sea technology. It has also established mechanisms to increase investment in future industries, fostering fields like biomanufacturing, quantum technology, embodied intelligence, and 6G. With the growth of these emerging and future industries, demand for high-end machine tools continues to rise, leading to significant changes in the demand structure and a notable elevation in the quality of requirements in the Chinese machine tool market.

In recent years, major global machine tool companies (such as DMG MORI, Yamazaki Mazak, TRUMPF, GF Machining Solutions, Bystronic, Danobat，SW, SCHUNK, Makino, NIDEC, FANUC, Siemens, HEIDENHAIN, and Sandvik) have accelerated their presence in China, establishing factories or expanding production capacity. This trend reflects both the urgent needs of China's manufacturing transformation and upgrading and the importance of the Chinese market against the backdrop of global industrial chain restructuring.

The expansion of international machine tool companies in China essentially aligns with the development requirements of global high-end manufacturing—"moving closer to demand, compromising for efficiency, and leveraging policy support." This process not only provides foreign enterprises with opportunities to reduce costs, improve efficiency, and expand incremental markets but also offers application scenarios for technological iteration and strategic footholds for global competition. At the same time, it spurs domestic enterprises to benchmark, catch up, and innovate, fostering a collaborative ecosystem for the machine tool industry and jointly exploring both Chinese and international markets.

The world economy moves forward amid the interplay of cooperative openness and trade protectionism, free exchange and tariff barriers, with every choice being crucial. We firmly believe that China will remain a vital hub for the global machine tool industry, an ideal investment destination, and an innovative application ground for technological progress. Partnering with China means partnering with opportunity, and investing in China means investing in the future.

May April be wonderful, and may we all embrace the beauty of spring!
May our exchanges spark brilliant ideas and our collaborations yield win-win outcomes!

Wishing this forum a complete success! Thank you!

April 20^th , 2025