China's import and export of equipment increased According to reports, in 2004 China's manufacturing boom rankings, instrumentation and culture, office machinery manufacturing ranked second. The top 10 industries are: electrical machinery and equipment manufacturing, instrumentation and culture, office machinery manufacturing, non-metallic mineral products, general equipment manufacturing and electrical machinery and equipment manufacturing, communications equipment, computers and Other electronic equipment manufacturing, plastic products, chemical materials and chemical products manufacturing, ferrous metal smelting and rolling processing industries, and cultural, educational and sporting goods manufacturing.

The overall demand of the industry continues to grow. The demand for most products is strong, and technological progress and product mix adjustments are effective. Industrial automation systems and instruments, optics, analysis, electronic measurement, testing machines and other scientific instruments and equipment, surveying and mapping equipment, medical equipment, environmental monitoring equipment, weighing instruments, water meters, gas meters and other supply instruments grow faster. In particular, products with higher technological content, such as DCS, intelligent instrumentation, digital surveying and mapping instruments, multi-function power meters and power transmission management systems, and electronic gas meters, are growing rapidly. DCS systems and instruments with independent intellectual property rights have been widely used in thermal power units of 300,000 kilowatts and below, small and medium-sized petrochemical engineering, and public utilities. Domestic DCS systems have also begun to enter 600,000 kilowatts of thermal power units, and independently developed oilfield dual-phase flow measurement. The equipment also successfully entered the Middle East market. According to relevant sources, the world's total control valve market was close to 3 billion U.S. dollars in 2002 and is expected to reach 3.5 billion U.S. dollars by the end of 2007, with an average annual increase of 3%.

However, there are also certain industry requirements that are limited by national policies and industry characteristics. Demand Forecast and Price Trends Currently, the domestic production capacity of electrical instrumentation products has been seriously excessive, and the entire industry is in a state of low profit. However, the cost-effectiveness of some high-tech products (such as electronic energy meters, etc.) will have a clear competitive advantage over older products.

Corporate restructuring has played a significant role in accelerating the change in the type of business enterprises through restructuring, restructuring and other related measures, the state-owned enterprises significantly increased sales revenue and profit growth, both double-digit growth, there has been a trend out of the trough, reducing difficulties upward. Compared with previous years, the development momentum of private enterprises has obviously slowed down. The rising trend of foreign-funded enterprises is rapid, with sales revenue and total profits exceeding half of the industry, and asset investment far exceeds state-owned enterprises and private enterprises.

Total import and export volume continues to rise. Imports and exports continue to rise. Estimated imports in 2004 may exceed US$12 billion, but the growth rate is expected to decline by 10~13% compared with the same period of last year. Among imported products, DCS, PLC, industrial automation instrumentation, semiconductor wafer and component testing equipment, electronic communication testing instruments, optical instruments, and analytical instruments have increased significantly; power meters, water meters, magnifiers, telescopes, microscopes, thermometers, and scales Imports of products that already have comparative advantages in China continue to decline.

China's precision instrumentation should strengthen its own research and development capabilities. China's instrumentation industry experts pointed out that at present, China's instrumentation products are mostly in the low-end level, the production status is not satisfactory. High-end, large-scale equipment and equipment are almost all dependent on imports, mid-range products and many key components. Foreign companies account for more than 60% of the domestic market. Domestic analytical instruments account for less than three-thousandths of the global market share. The gap between domestic instrumentation and imported products is significant. According to relevant analysis, in addition to the overall quality of domestic products lagging behind imported products, the lack of policy protection is also a unique factor in the quality of imported products on the domestic market. The deeper internal reason is that since the early 1990s, in the areas of high-tech automated instrumentation and systems, scientific test instruments, and sensor components, the major players in competition have been the introduction and joint venture products. In the process of introduction, joint venture, and localization, domestic companies lacked research on the key technologies of products, they could not independently upgrade their products, and the phenomenon of repeated introduction was serious. China has joined the WTO, and tariffs on instruments and meters will be further lowered. Foreign companies will accelerate their entry into the Chinese market. In order to win the competition with foreign-funded enterprises, Chinese companies must take a good "technical pass" and accelerate their technological progress.

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