A Comparative Analysis On International Competitiveness Of The Equipment Manufacturing Industry Between China And Germany

The equipment manufacturing industry is a kind of manufacturing industry that providing the production technology and equipment to the national economy and the national defense construction, it is the core part of the manufacturing industry and the basis of the development of the national economy,especially for the industry development.Powerful equipment manufacturing industry is a reflection of a country’s comprehensive strength, also is the fundamental guarantee of realizing industrialization,so,the government attaches great importance to the development of the equipment manufacturing industry.Since the opening up,Chinese equipment manufacturing industry has made great achievements,in 2011,the total output value of the equipment manufacturing industry became first in the world.China has been a big country in the equipment manufacturing industry.However, because of Chinese restrictions on independent innovation, financial support and policy environment, Chinese equipment manufacturing industry has been big,but not strong, the level of the development still lags behind the United States, Japan, Germany and other developed countries.Therefore, objective evaluation of the equipment manufacturing industry’s international competitiveness in our country and the developed countries is needed,which can help us found the reason why the international competitiveness of Chinese equipment manufacturing industry lags behind developed countries and find the effective measures to promote the development of Chinese equipment manufacturing industry.As Germany’s equipment manufacturing industry being in a leading position in the world,this paper selects Germany as the representative of the developed countries, and selects the international competitiveness of the equipment manufacturing industry in China and Germany as the research object, basing on the international trade data of the equipment manufacturing industry to analyze the equipment manufacturing industry’s international competitiveness in China and Germany;then using the diamond model to analyze the factors influencing theinternational competitiveness.Finally, it puts forward a few measures to promote the development of the equipment manufacturing industry in China.The content of this paper is divided into six parts, the first part is the introduction, summarizing the research background,the significance of the research and the domestic and foreign research literature, briefly introducing the arrangement of the contents of this paper, and finally pointing out the possible innovations and shortcomings. The second part introduces the relevant concepts and basic theories, firstly, the concept and characteristics of the equipment manufacturing industry are introduced, then the definition and theoretical basis of the international competitiveness of industry are introduced.,finally, the trade index used in this paper is introduced.The third part is the analysis of the development status of the equipment manufacturing industry in China and Germany,from some aspects:production scale,trade scale and so on.The fourth part is the comparison of the international competitiveness of the equipment manufacturing industry in China and Germany, which is the core part of this paper. In this part, the two methods of single index evaluation and comprehensive evaluation are adopted to evaluate the international competitiveness of the equipment manufacturing industry. In the section of single index evaluation, this paper selects the international market share index (MS) and revealed competitive advantage index(CA), the evaluation results show that Chinese equipment manufacturing industry in the international market share has exceeded that of Germany, but at the same time because of our huge import of the equipment manufacturing industry, Chinese equipment manufacturing industry’s international competitiveness is smaller than Germany, In the section of comprehensive evaluation,this paper uses principal component analysis method, it selects six trade indexes that commonly used and based on trade value.The analysis conclusion is that the overall international competitiveness of Chinese equipment manufacturing industry improve constantly, but still less than the international competitiveness of the equipment manufacturing industry in Germany; the international competitiveness in this three industries(instrument and culture office machinery manufacturing industry,computers,communications and other electronic equipment manufacture industry,electrical machinery and equipment manufacturing industry)is bigger than Germany, and in the remaining four industries, Chinese international competitiveness is smaller than Germany.The fifth part is the analysis of the influence factors of the international competitiveness of the equipment manufacturing industry based on diamond model. This part mainly analyzes the reasons why the international competitiveness of Chinese equipment manufacturing industry is smaller than Germany,from six aspects:factor conditions, domestic demand,supporting and related industries,enterprise strategy structure and competition,government and opportunity. The results show that,the factors that hinder the improvement of our international competitiveness are these:the low level of technology, poor ability of independent innovation, low level of industrial clustering and so on. And the lower labor costs, the huge domestic demand, the support of related industries, the government support and other factors contribute to the international competitiveness of China’s equipment manufacturing industry.However, the improvement of the international competitiveness of the equipment manufacturing industry in Germany depends on the cultivation of high quality workforce, the continuous technological innovation, the high degree of industrial clustering, and other factors.The sixth part are the policy and recommendations, according to the above analysis, we can see the problems and the deficiencies existing in the development of Chinese equipment manufacturing industry.In reference to the development experience of Germany equipment manufacturing industry,this chapter put forward some suggestions that promoting the development of Chinese equipment manufacturing industry:the government should take the relevant measures flexibly; taking efforts to improve the ability of independent innovation; construct the industrial clusters based on industrial chain; accelerate industrial upgrading, and vigorously developing the high-end equipment manufacturing industry; pay great attention to the balanced development of large enterprises and small enterprises; strengthening the cooperation between China and Germany and promoting common development.Previous research on this topic is mostly based on the whole research,and the evaluation method of international competitiveness mostly adopts the single index evaluation method.The principal component analysis method is a comprehensive evaluation method, it can not only evaluate the whole competitiveness of equipment manufacturing industry,but also evaluate the competitiveness of each industry of equipment manufacturing industry. In addition, this paper is based on the analysis of trade data in the section of international competitiveness evaluation, which has certain limitations.