Promising outlook for private enterprises

On international stage

Peng's pursuit of technological innovation dates back to the late 1980s when he accompanied then factory director Sun Wenjing on a sales trip to Japan to promote castings, only to be ridiculed for their product quality.

To meet the needs of its Japanese clients, staff members — from factory leaders to chief engineers and workshop managers — focused on technical improvements.

After two months of preparations, the samples were approved by the Japanese clients.

Subsequently, the foundry gradually established joint ventures with Japanese companies.

After gaining a foothold in the Japanese market, they set their sights on the European and US markets, targeting an order from US-based General Electric Co for power machinery castings.

At the time, high-end castings in China were reliant on imports, and GE's requirements for gas turbine casings were stringent, requiring precision testing through X-rays, ultrasonic waves, and standards far exceeding domestic levels.

After prolonged efforts of systematic process improvements and alignment with standards, as well as nearly 100 million yuan ($13.8 million) in equipment upgrades, Kocel Group Ltd successfully received orders from General Electric, becoming a major supplier in the Asia-Pacific region.

This breakthrough quickly triggered a chain reaction, with international companies such as Siemens in Germany signing cooperation agreements.

"In the past, manufacturing companies focused more on production and manufacturing, investing more people and resources in this area, while marketing as well as research and development were relatively weaker. With the development of digitization and intelligence, manufacturing has become less labor-intensive, with investments in marketing as well as research and development growing larger," Peng said.

Despite the current challenges faced by China's manufacturing sector in expanding globally, including geopolitical tensions and trade conflicts, Peng emphasized that leveraging technology-driven products and implementing the "close enough to clients" strategy — establishing branches or factories near clients overseas — are crucial factors for achieving success.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, shared a similar view.

Zhou noted that industries like machinery are now facing more complex overseas environments and heightened investment scrutiny from host countries.

He emphasized the importance of seizing opportunities in competitive markets such as the Middle East and emerging economies.

Furthermore, Zhou stressed the need for companies to embrace technological and environmentally friendly practices by developing green technologies, adopting new energy solutions, supporting eco-friendly initiatives, and actively engaging in sustainable development efforts.