Research On Evaluation Of International Competency For China Railway Equipment Manufacturing Enterprises

The Chinese government promised to join the Government Procurement Agreement after 2 years when joined the World Trade Organization in 2001.But China has still not joined the Government Procurement Agreement, and the government procurement has not been opened. The main reasons for the government not joining the Government Procurement Agreement are that China's industrial competitiveness is not very strong needing appropriate government protection; The government procurement system and institutional arrangements are not yet mature, and so on. The international community has no understanding of our industry development thinking our country benefit a lot from China's accession to WTO without keeping its promise of performing other related duties as required. So they exert strong pressure on our government to require our government to join the Government Procurement Agreement. If China join the GPA, China's railway equipment manufacturing industry will face direct competition from multinational corporations. When purchasing rolling stock, our country will allow multinational companies such as Siemens to participate in the tender. Meanwhile, China's railway equipment manufacturing enterprises can also participate in government procurement markets of other member states. Under this circumstance, it is necessary to study the international competitiveness of China's railway equipment manufacturing enterprises to provide support for government decision-making.The article based on the results of previous studies, defined the concept and the connotation of the competitiveness of enterprises, and built the index system which appraised the competition ability of the railway equipment manufacturing enterprise. Using the factor analysis method, the article conducts a comprehensive evaluation and empirical analysis on seven sample companies from production, marketing, R & D and financing capabilities. The overall competitiveness evaluation result shows that compared with the large international companies, the railway equipment manufacturing production enterprises in China still lags behind, ranked last in the seven samples enterprises.China Railway equipment manufacturing enterprises are in a preliminary condition to join the GPA, but advantages and risks are all existing. So we need a corresponding policy support to make sure our enterprises are in a good position in the competition after opening up the domestic market. We can use partial opening-up strategy that the market of Railway rolling stock whose speed is less than 160KM is only been opened. If we implement all open-up policy, some internal adjustments such as increase the R & D investment should be made to avoid some of the disadvantaged of domestic enterprises.