For more than half a century, the manufacturing industry of the new Chinese textile machinery has undergone the following stages of development: Phase I - period of planned economy (from the founding of new China until the early 1980s). After the founding of New China, the state confiscated the bureaucratic capital enterprises (the people's government confiscated the bureaucratic capital of the parent company of Shanghai Textile Machinery Co., Ltd., No. 2 Machinery Plant, No. 1 Machinery Plant in Qingdao and No. 1 Machinery Plant in Tianjin to state-owned enterprises; China Textile Machinery Co., Ltd. of the plant, branch and the Far East cloth factory to public-private joint venture) and the national capital of enterprises in the socialist transformation at the same time, began to build a new textile machinery manufacturing enterprises, laid the new China self-reliance The complete textile machinery and equipment manufacturing supply system. During this period, China's textile machinery manufacturing industry showed the following characteristics: First, production and business activities reflect the obvious characteristics of planned economy. At this stage, the national textile machinery enterprises basically belong to the nature of state-owned and collective ownership. Under the long-term planned economy system, as in other industries, the textile machinery factories make arrangements in strict accordance with the directives and plans laid down by the state and are governed by the state unified organization and deployment man , Finance, property, production, supply, marketing and other business activities, the Ministry of Textile Industry is responsible for reviewing textile machinery products, costs, prices and other control indicators, textile machinery factories around the country as a large textile machinery enterprises in the workshop, there is no Production and management of autonomy and independence. Second, the production layout is relatively fragmented. Most of the provinces, autonomous regions and municipalities in the country have established textile machinery manufacturing enterprises in their territories through new construction and large-scale relocation from the coast to the interior. Among these enterprises, Handan Textile Machinery Factory, Henan Textile Machinery Factory, Wuhan Textile Machinery Factory and Hangzhou Textile Machinery Factory are new investment and construction projects of the country, while Yellow Factory Textile Machinery Factory, Baiyin Textile Machinery Factory, Changde Textile Machinery Factory , Hengyang Textile Machinery Factory, Weinan Textile Machinery Factory and Yichang Textile Machinery Factory were relocated and rebuilt respectively in the developed coastal areas of Shanghai, Qingdao and Shenyang. Third, the concentration in production is not high, and the market structure shows weak competition. Although the number and output of China's textile machinery enterprises increased rapidly during this period, the production concentration of China's textile machinery industry was not high due to the scattered production layout, the generally small scale of the enterprises and planned production. Shanghai Textile Machinery , Erfangji, Qingdao Textile Machinery and other "national team" although in the industry for a long time in the vanguard of the position, but can not form the dominant force on the market supply. Fourth, the production technology is generally not high. Due to the closed development over the years, although China's textile machinery manufacturing industry can achieve self-sufficiency, but compared with the textile machinery industry in developed countries, China's textile machinery production technology is at a low level, with the technical gap between foreign enterprises to further enlarge. The second stage - from the planned economy to the market economy transitional period (from the mid-1980s to the mid-to-late 1990s, that is, the "Seventh Five-Year" and the "Eighth Five-Year" period). Driven by the rapid growth of the textile industry, China's textile machinery industry also showed a strong growth trend during this period. The sales revenue of domestic textile machinery increased from 2.49 billion yuan in 1986 to 6.41 billion yuan in 1990. Of the total output of textile machinery increased from 356,000 tons in 1985 to 44,000 tons in 1990 and 59.1 tons in 1994. During this period, the volume of textile machinery and equipment in China increased substantially. The number of cotton spinning spindles increased from 23.23 million spindles in 1985 to 38.82 million spindles in 1990 and 41.91 million spindles in 1995. The cotton weaving looms increased from 668,000 units in 1985 To 860,000 in 1990 and to 913,000 in 1995. Since the "Eighth Five-Year Plan" period, as China's textile industry has entered a new period of structural adjustment, the state has successively promulgated a series of structural adjustment policies such as limited production, suppression and downsizing. Influenced by market demand and national policies, the textile machinery The industry has also entered a period of adjustment. The growth rate of total output value of textile machinery dropped from 8.2 percentage points during the "Seventh Five-Year Plan" period to 3.6 percentage points during the "Eighth Five-Year Plan" period. Overall, China's textile machinery industry during this period showed the following development features: First, the strict planned economy began to be broken ice, textile machinery industry began to show competition, flourishing pattern. The scope of the guiding price is also extended from ministries and enterprises to the whole industry. The distribution system of the annual production plan was canceled and the order of production was changed. The market-oriented production and operation activities were determined. However, compared with the textile and apparel industry, the market-oriented process of textile machinery manufacturing industry lagged behind until 1992, basically breaking away from the planned economy. Second, relax market access and form a pattern of regional competition in various ownership and production. The pattern of unification of the state-owned enterprises in the world began to be broken. A large number of collective-owned enterprises and private-owned enterprises in villages and towns began to enter the investment field. Foreign capital began to enter the joint venture mode gradually after the mid-1990s and laid an emphasis on the old pattern of unified state-owned textile machinery market Has a strong impact. The layout of textile machinery in China began to be gradually concentrated in a number of important regions from the decentralized layout in the early stage of the planned economy and eventually formed a competitive landscape dominated by Beijing (China Textile Machinery Group), Shanghai (Pacific Group), Jiangsu, Zhejiang and Shandong , Of which Beijing and Shanghai dominated the state-owned economy while Jiangsu, Zhejiang and Shandong dominated townships and private-owned enterprises. As of 1997, there were nearly 50 foreign-invested enterprises in China's textile machinery industry with a total capital stock of nearly 100 million U.S. dollars (see Chapter 10 of Wu Wenying's brilliant New China Great Record (Textile Volume) 1949-1999) , Red Flag Press, October 1999). Thirdly, the expansion of the domestic production scale shifted from rapid growth to a steady growth stage. Imported products occupied an increasingly important position in the domestic market. On some high-tech products, imports basically formed situation. From the point of view of domestic production, taking cotton spindles as an example, the domestic production of 23.23 million spindles in 1985 increased to 31.54 million spindles. From 1989 to 1991, the number of spindles expanded rapidly by 3 million spindles each year , Respectively 35.65 million, 38.82 million and 41.92 million. In a few years after 1991, the domestic production of cotton spindles has been stable in the range of 4100 ~ 4200. As foreign textile machinery products in the technology, technology and quality at a clear competitive advantage, imports of textile machinery products influx in this period. According to statistics, during the "Seventh Five-Year Plan" and the "Eighth Five-Year Plan" period, the import of textile machinery was equivalent to RMB23 billion and RMB85.2 billion respectively, while that of the domestic textile machinery market was RMB24.5 billion and RMB42.0 billion respectively. The comparison of import and domestic textile machinery power In the "Eighth Five-Year Plan" period has completed the transformation, from "equal" to "champion" in the high-end products, but also imported products accounted for one-man show. Fourthly, a breakthrough has been made in the reform of the management system that takes the separation of government from enterprise and the reorganization of assets as the main contents. In 1988, the state decided to separate out more than 20 textile machinery factories directly under the former Ministry of Textile Industry and form China National Textile Machinery Corporation (later reorganized into wholly state-owned China Textile Machinery Group Co., Ltd. in 1996). Soon, Shanghai based on the original tube of textile machinery and equipment enterprises, through the reorganization of assets set up Pacific Electrical Group Corporation. In 1990, the Textile Machinery Association was established as a national civil organization in the textile machinery industry with more than 500 association members. In 1993, the former Ministry of Textile Industry revoked according to the decision of the Eighth National People's Congress and formed the China Textile Federation. Its functions were defined as "formulating industrial plans, implementing industrial policies, providing macro guidance and providing services to enterprises." Textile machinery industry along with the textile industry by the China Textile Association management. In terms of the nature and functions of the textile association, it is more of a national industry management function, a first-level government industry authority, and an association that provides services to enterprises is relegated to second place. The third phase - the period of structural adjustment and open competition in the context of globalization (since the late 1990s). In 1997, the Central Economic Work Conference identified the textile industry as a breakthrough in the reform and relief of state-owned enterprises and put forth three tasks of "suppressing, reducing staff and turning losses". It plans to shake off the operational plight of the whole industry in three years. For the textile machinery industry, the most important impact is the policy of "limited production". The emphasis is on reducing the outdated 10 million cotton spinning equipment to solve the problem of excess total amount of cotton spindles, making long-term losses and turning point in loss-making enterprises through mergers, Bankruptcy and asset restructuring and other means to be resolved. Against this background, the national textile machinery industry, especially the state-owned textile machinery enterprises, experienced unprecedented market pressure in 1998 and the first half of 1999. In 1998, the entire industry suffered a record loss of 278 million yuan. In the case of a total reduction, structural adjustment and business restructuring have become the major focus of state-owned textile machinery enterprises. At this time, the pace of development of private-owned enterprises and foreign-funded enterprises further accelerated, causing strong impact on state-owned textile machinery enterprises. First, the state-owned textile machinery enterprises were affected by the policy of "limited production of spindles" in the downstream textile and garment industry. The performance showed a large-scale decline and the market rebounded in 2000. Affected by the policy of under-pressure and the impact of the Asian financial crisis, in 1998, the entire textile industry in the country suffered an unprecedented industry-wide loss. By the end of 2000, the country had completed 9,400,000 compressed cotton lag behind the country, compressed backward wool spinning and reeling capacity of 280,000 and 1 million, diverting 1.4 million people. Relative to the private and foreign investment, the state-owned textile machinery enterprises are more affected by the policy of undermined. In 1998 and 1999, the total output value of the textile machinery industry in the whole country was 7.590 billion yuan and 7.704 billion yuan, a drop from the 10.776 billion yuan in 1997. In 2000, the textile machinery industry witnessed a turning-point in the market. With the basic completion of the task of limiting the amount of production and the improvement of the operating performance of the national textile industry, the textile machinery market began to recover. This year, the total output value of the textile machinery industry in the country increased from 77 Billion yuan soared to 146 billion yuan. Second, the reform of the management system has been further deepened and a new management system adapted to the market economy has basically taken shape. In 1998, the State Council implemented the fourth institutional reform. Nine industry management departments, including the textile industry, and their functions were incorporated into the State Economic and Trade Commission and became the state bureau. National Textile Industry Bureau to exercise the macro-management functions of the national textile machinery industry. In February 2001, the state decided to withdraw the above-mentioned 9 state administration boards and integrate its administrative functions into the State Economic and Trade Commission. China Textile Industry Association set up under the branch of textile machinery, service enterprises to become a civil self-regulatory organizations. At this point, the national textile machinery management system basically rationalized. Third, the market-oriented reform has basically been completed. There are basically three main signs of marketization reform: First, the state's administrative intervention in the production and operation of textile machinery enterprises (mainly state-owned and state-controlled enterprises) no longer exists and the textile machinery enterprises have truly become self-employed legal persons facing market competition entity. Textile enterprises (especially private and foreign-funded enterprises) in the production of what, how to produce, for whom production and other market economy under the most basic problems have been solved, enterprises in the investment, cost, price, wage and other micro-level decision-making have Complete autonomy. Second, the reform and restructuring of state-owned enterprises in establishing a modern enterprise system have basically been completed. Some wholly state-owned enterprises were reorganized into state-controlled group-type enterprises such as China National Textile Machinery Corporation and Shanghai Pacific Group Corporation. Some state-owned enterprises were restructured into share-based joint-stock companies under the company law and successfully listed. For instance, Some state-owned textile machinery enterprises in the reorganization and restructuring of mergers, joint and reorganization of assets, there are some long-term operating losses of textile machinery enterprises bankruptcy liquidation. Third, the restructuring of township and village collective enterprises has basically been completed. A large number of township and town textile machinery enterprises (mainly concentrated in Jiangsu, Zhejiang and Shandong provinces) that emerged in the 1980s and 1990s have all restructured themselves from the mid-to-late 1990s into corporate-based enterprises that meet the needs of the market economy. Fourth, a competitive market structure has basically taken shape. In the period of planned economy, the textile machinery industry in the whole country was highly concentrated, but this concentration was not the result of market competition but an administrative monopoly with the administrative power as the background. For example, China Textile Machinery Group, which is directly under the Central Government, has a long-term dominance in the planned economy. In 1982, among the 1.2 billion output value of the country, China Textile Machinery Group accounted for 70% of the total. This situation began to change in the mid-to-late 1990s. After entering the 21st century, the market competition pattern of China's textile machinery industry has undergone fundamental changes. The top five forces have been competing for the domestic market. No single enterprise can become the absolute power to dominate the domestic market This competitive market structure is very favorable for the further development of the textile machinery industry. Fifth, multinational corporations have accelerated their investment in China and intensified their efforts. The bright future of China's textile machinery market has always been attractive to foreign enterprises. However, this attractive outward appearance is undergoing significant changes. That is, foreign textile machinery enterprises begin to focus on the export of complete machine products to China and directly invest and set up factories in China for localized production and sales. With China's accession to the WTO and the acceleration of the pace of economic globalization, the well-known foreign textile machinery enterprises in recent years have stepped up their investments in China. In recent years, Swiss Rieter, Sura Group and Italian E-Tema Group have accelerated their business in China. In addition to further enriching their sales force Assembly and equipment maintenance business. Textile machinery industry in Suzhou, Wuxi, Changzhou and Hangzhou has a good foundation, a complete supporting system and a relaxed policy environment, making it the preferred investment destination for foreign textile machinery enterprises. Sixthly, private-owned enterprises are rapidly emerging and have strongly impacted state-owned and state-controlled textile machinery enterprises in the low-end and mid-end product markets. The private textile enterprises in China, represented by Zhejiang and Jiangsu Provinces, are developing rapidly in recent years and have had a severe impact on some of their products in the market structure dominated by state-owned textile machinery enterprises. For example, Zhejiang Rifa Group and Golden Eagle Group have now developed into large-scale private enterprises with annual sales of 2 to 300 million and 500 to 600 million.