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instrumentDepth of the Internet Industry】In order to shape new advantages in attracting foreign investment during the "15th Five Year Plan" period, the Ministry of Commerce, together with the National Development and Reform Commission, the Ministry of Finance and other departments, recently jointly issued the "Action Plan for Utilizing Foreign Investment to Stabilize and Promote Excellence". It introduces 15 measures from five aspects, including expanding market access, improving investment convenience, and improving service guarantees, to promote the transformation of foreign investment utilization from "attracting investment on a large scale" to "improving quality and capital".
instrumentation and metersAs a core supporting industry for high-end manufacturing, biomedicine, and digital economy, it is a key area covered by this policy.
Policy Empowerment: The Industry Welcomes Multiple Development Opportunities
This new policy focuses on opening up high-end industries and empowering innovation, accurately matching the high-end and intelligent development needs of the instrumentation industry, and releasing multiple substantial dividends. 1、 Assist in breakthroughs in core technologies. Policies support foreign investment in establishing research and development centers in China, implementing tax incentives for scientific research, facilitating the circulation of high-end talents, and promoting the landing of cutting-edge foreign technology and research and development resources domestically. Local enterprises can make up for the bottleneck shortcomings such as high-end sensors, precision optical components, and measurement and control chips through joint research and technological cooperation, accelerate the transformation of technological achievements, and get rid of the development dilemma of low-end homogenization.
2、 Expand the market application space. The new policy will open up foreign investment access in fields such as medicine and health, high-end manufacturing, etc., implement national treatment for domestic and foreign enterprises, and ensure fair market competition. The demand for biopharmaceutical testing, industrial intelligent measurement and control, and environmental precision monitoring continues to expand, creating new supporting scenarios for domestic instruments and meters. High quality local enterprises can use this opportunity to enter the high-end supply chain and government enterprise procurement system.
3、 Activate the vitality of industrial capital. Optimize policies to support foreign mergers and acquisitions, cross-border financing, and reinvestment, and lower the threshold for foreign investment layout. Foreign investment leaders are increasing their production capacity and R&D layout in China, driving the agglomeration of upstream and downstream industrial chains. At the same time, foreign equity investment can empower small and medium-sized innovative enterprises, and help promote the scale and branding development of the industry. In addition, the continuous improvement of the international business environment has forced local enterprises to benchmark against international standards
standardConsolidate the foundation for overseas development.
Open up changes: the industry faces core competition challenges directly
High level opening up has broken down the existing market barriers in the industry. With the deep layout of foreign investment, the shortcomings of local instrument and meter enterprises continue to be highlighted, and the competition pressure in the industry has significantly intensified. One is the pressure on the high-end market share. Domestic mid to low end instruments and meters have basically achieved localization, but high-end scientific instruments and precision measurement and control equipment are still monopolized by foreign investment. After the implementation of the new policy, the cost of foreign investment layout has been reduced and efficiency has been improved, further seizing core high-end markets such as scientific research and high-end manufacturing. The difficulty of replacing local high-end enterprises has increased.
Secondly, the competition for talent innovation is fierce. Foreign investment, relying on favorable treatment and high-end R&D platforms, continues to attract core technical talents and engineers in the domestic industry. Coupled with insufficient R&D investment and weak innovation systems in local enterprises, the risk of talent loss in the industry is exacerbated, and it is easy to form a fixed pattern of "foreign investment controlling high-end, local guarding low-end".
Thirdly, the industry reshuffle continues to accelerate. The problem of "small scattered weak" in the domestic instrument and meter industry is prominent, with a large number of small and medium-sized enterprises experiencing severe product homogenization and weak competitiveness. The sinking of foreign-funded products and the normalization of fair competition in the industry will continue to squeeze the survival space of low-end enterprises, and the pace of elimination and clearance of small and medium-sized enterprises will accelerate. At the same time, new compliance regulations such as cross-border data and security reviews have been implemented, significantly increasing the R&D and operational costs of enterprises.
Breakthrough Path: Transformation and Development Strategies for Local Enterprises
Faced with opportunities and challenges, local enterprises need to rely on independent innovation, leverage policy dividends, and achieve differentiated breakthroughs. Firstly, we will focus on tackling core technologies, increase investment in research and development in high-end fields, adhere to the principle of self-reliance and controllability, supplemented by external cooperation, and leverage foreign investment innovation platforms to fill the gaps in technology and strengthen our core competitiveness. Secondly, we will deepen our focus on segmented high-quality tracks, avoid low-end competition, and concentrate on essential fields such as semiconductor testing, new energy measurement and control, and biopharmaceutical instruments. We will create specialized and differentiated product advantages and seize segmented markets through localized services.
Once again, deepen the synergy of the industrial chain, actively integrate into the high-end industrial chain supporting system of foreign investment, learn advanced production processes and control systems, while strengthening the linkage of local industries and improving the domestic supply chain ecology. Finally, we will strengthen talent cultivation and compliance construction, establish a talent incentive system to resist talent loss, adapt to compliance requirements such as data security and cross-border operations, and steadily connect with the international competitive landscape.
During the 15th Five Year Plan period, the instrumentation industry will enter a critical cycle of "open competition, quality improvement and upgrading". On the technical level, the integration of domestic and foreign innovation is accelerating, and the substitution of high-end localization is continuously promoted; At the market level, low-end production capacity is accelerating its clearance, industry concentration is steadily increasing, and segmented leaders are gradually rising; At the industrial level, industry standards and compliance systems are fully integrated with international standards, and high-quality local enterprises will gradually enter the global market. Overall, the new foreign investment policy is an important opportunity for industry transformation. In the short term, intensified competition and accelerated reshuffling will force the industry to break through development bottlenecks in the long term, and promote the upgrading of China's instrument and meter industry towards high-end, international, and high-quality development.