State-owned enterprises will face double cofferdams

In recent years, under the encouragement of policies, China’s electrical equipment industry has experienced considerable development in terms of technology upgrades, patent standards, and branding. The medium- and high-voltage electrical manufacturing companies represented by Delixi Electric are changing the way that Chinese companies can only participate in the international division of labor. Low-end embarrassing situation. But overall, Chinese counterparts want to surpass the United States, at least for a short period of time. Even Delixi Electric Co., Ltd. is still most adept at the production of its established technology platform by its “allies” Schneider Electric. Although this situation is changing, it is unlikely to achieve a fundamental breakthrough in the short term. In the more sophisticated industries, such as UHV grid control systems, UHV protection devices, smart grid monitoring systems and measurement systems, the use of automated, intelligent equipment, China's electrical equipment companies to achieve a major technological leap may still be very limited.

In the past 10 years, the foreign-owned electrical companies have continuously increased their control over the Chinese electrical manufacturing industry. In the subdivided electric power industry in which China is completely open to foreign-funded enterprises, the top five companies in each industry are rarely controlled by Chinese companies. Among the major power grid industries, foreign-funded enterprises have the majority of control power in dozens of industries. The industrial progress that China's electrical industry has achieved is far less than that of foreign investment.

On the other hand, the development routes such as “reindustrialization”, low-carbon economy, next-generation new energy, and smart cities originated in Europe and the United States are intended to lock in the high-end manufacturing field and seek to shape new competitive advantages. This will not only pose greater pressure on China's high-end electrical equipment industry in the future, but will also result in a market squeeze for products that have already formed advantages. Because financial markets have strong industrial support capabilities and powerful global supply chain management capabilities, international electric giants like ABB, Schneider, Weidmüller, Siemens, Mitsubishi, Omron, Westinghouse, etc. may be the first to set off a new economic revolution. Afterwards, another industrial revolution has re-cutted the global industrial landscape, thereby re-establishing its market and technological advantages for China. This is by no means an alarmist. In the field of low-voltage electrical appliances, international electric giants have begun to "knife" in China.

Driven by corresponding interests, giants of foreign electric companies have successively seized the domestic market. Internationally renowned companies such as Schneider, Fuji, Siemens, and ABB have successively landed in China. In addition to segmenting domestic high-end markets, they also implement a “localization” strategy, setting up factories in China with wholly-owned or joint ventures, and occupying a growing market share in the domestic mid-end electrical market, even in the country. The low-end market for electrical appliances. This is undoubtedly a fatal blow to domestic low-voltage electrical appliances "low price advantage", and ultimately can only force companies to survive in the gap between the low-level market.

In the environment where the global electrical equipment industry division of labor system is restructured, China, as the largest production system, must clearly estimate that there is still a huge gap between China and Europe and America in the high-end electrical manufacturing industry, and the competitiveness of China's high-end electrical manufacturing industry is new. A protracted war.