During the 12th Five Year Plan period, the basic conditions for stable and rapid development of China's economy and the long-term trend of improvement will not change. The total demand for mechanical products in the market will continue to grow, but the growth rate of demand will slow down compared to the previous decade. However, due to the focus of macroeconomic policies on economic transformation and upgrading, as well as scientific development, the requirements for the variety, quality, and level of mechanical products will receive more attention. Therefore, during the 12th Five Year Plan period, China's machinery industry must recognize this situation and accelerate its own transformation and upgrading.

1. Strong momentum in upgrading major technological equipment

The key construction and technological transformation in key areas of the national economy such as electricity, petrochemicals, and metallurgy will bring huge demand. Taking power equipment as an example, during the 12th Five Year Plan period, the installed capacity of power generation equipment will increase from 930 million kilowatts in 2010 to 1.4 billion kilowatts in 2015, with an additional 450 million kilowatts added over the next five years and an average annual demand of 90 million kilowatts. With the renovation of old and exported units, the average annual demand will exceed 100 million kilowatts, which can generally maintain the total demand during the 11th Five Year Plan period; Of particular concern is the significant increase in demand for renewable energy and new energy equipment such as nuclear power, wind power, and hydropower, and the accelerated development of ultra-high voltage transmission and transformation equipment. Large scale petrochemical and metallurgical mining equipment will also have new developments