State Council of China Pushing Going-out, Abrasives Benefit

Recently, the State Council of China released On Promoting the International Production and Equipment Manufacturing Cooperation Guidance. As the guidance document in the present and the future, promoting the international capacity and equipment manufacturing cooperation, it is clear that regards developing countries as a key nations, and actively explores the market in developed countries. And the iron and steel, non-ferrous, building materials, railway, electric power, chemical, textile, automobile, communication, engineering machinery, aerospace, shipbuilding and offshore engineering are viewed as key industries, which should be put in practice according to its sort and be put forward orderly.

The main task in the Guidance: Promote the co-operation with foreign countries on iron and steel with non-ferrous industry; Facilitate international cooperation on building materials industry advantage; Speed up the pace of railway "going out" and the development of rail transit equipment to the international market; Develop and implement overseas power projects; Strengthen the development of overseas resources and promote overseas investment of chemical key areas; Improve the international cooperation level of light industry textile industry; Speed up the independent brand cars towards the international market by setting up overseas factories and so on; Improve the international competitiveness of information communication industry; Promote engineering machinery and some other manufacturing enterprises to improve the network of global business; Promote the output of aerospace equipment; Exploit the high-end market of ship and ocean engineering equipment.

The analysis is that the iron and steel, non-ferrous, building materials, automobile, machinery, aerospace, shipbuilding and other industries are expected to accelerate the pace of "going out", which is beneficial to absorb the excess capacity and enhance the level of industry profitability. Those abrasives industry that is closely related to these industries is bound to benefit.

Experts point out, there is short board of development in infrastructure, international capacity and equipment manufacturing in many countries along the route. It is urgent to improve the demand. Promoting China's equipment manufacturing industry "going out" not only enhance the image of Made in China, transferring part of effective capacity, at the same time, but also can dissolve the overcapacity problem facing China's economy at present.

Our abrasives products have comparative advantage over price, quality, technology and supporting services, which is even more obvious in developing countries. They desire to "go out" to realize their own value, and benefit other countries. Guidance points out that it is beneficial to promote international cooperation if the international cooperation in production and equipment manufacturing is active, which can form new economic growth point in our country, promote enterprises to improve technology, quality and service level continuously, enhance the overall quality and core competitiveness, promote economic structural adjustment and industrial transformation and upgrading, and finally realize the improvement from the product output to the industry output.