The state-owned enterprise reform in the precision parts machining machine tools industry should be conducive to enterprises’ innovation and development, as well as to the overall advancement of China’s machine tool industry. Deepening institutional reforms and accelerating institutional and mechanism innovations in CNC parts machining enterprises can enhance their intrinsic vitality. We must promote shareholding system reforms in large and medium-sized state-owned enterprises, foster diversification of investors, improve corporate governance structures, and establish modern enterprise systems. State-owned and state-controlled enterprises should streamline their core businesses by separating primary and auxiliary operations, restructuring subsidiary businesses, and divesting social functions, thereby focusing on their core competencies and boosting efficiency.

Precision parts are manufactured using machine tools whose machining processes are controlled by numerical control (NC) technology—or, in other words, machine tools equipped with NC systems. Machining mechanical parts with NC machine tools is referred to as CNC machining. CNC machining differs from conventional machine tool machining in that the control information required for CNC machining—such as the toolpath, the sequence of various movements, and various auxiliary functions (e.g., spindle speed, feed rate, tool changes, coolant on/off)—is stored in digital form as a machining program on a control medium. The CNC system then uses this program to automatically guide the machine tool through the entire machining process.

Driven by market demand, China’s CNC machine tool industry will continue to experience robust growth at a high rate, with an average annual compound growth rate reaching 37.4%. CNC machine tools have now become the mainstream choice in machine tool consumption. During the 12th Five-Year Plan period, China will maintain and even intensify its investment efforts, with major special projects each year attracting over 10 billion yuan in funding. This not only boosts the market development of domestically produced CNC machine tools, CNC systems, and related functional components but also provides domestic CNC system manufacturers with excellent opportunities to continuously advance their technologies and expand their markets.

There are several hundred enterprises in the domestic market engaged in the maintenance and modification of precision machinery parts, operating under two distinct systems. In recent years, many enterprises, after undergoing restructuring, have spun off their ancillary facilities—such as machine repair workshops and branch plants—that previously served their core businesses, establishing them as independent companies. At the same time, a large number of highly skilled technical professionals have set up privately-owned maintenance and modification companies, collectively giving rise to today’s machine tool maintenance and renovation industry. Machine tool manufacturers enjoy significant advantages when engaging in remanufacturing activities; however, the reality is that, given the exceptionally strong market demand for new machine tools, these manufacturers often lack the energy and resources to focus on remanufacturing. Moreover, they worry that remanufactured products might negatively impact sales of their new machines. As a result, most machine tool manufacturers even exhibit a natural resistance toward entering the remanufacturing business.