Machinery industry is the pillar industry of a nation, and plays an important role in the national economy; the machinery industry has nearly 50,000 manufacturing enterprises, and the number is increasing, leading to more fierce market competition, a trend of survival of the fittest becoming more apparent. Machinery industry has a low concentration of production and a low level of productivity, which seriously impeded the development of the industry; machinery industry is calling for innovation and development.

Machinery and equipment industry's sub-sectors: engineering machinery, rail transportation equipment, building materials and equipment, power generation, power transmission equipment, environmental protection equipment and equipment for comprehensive utilization of resources, special castings and forgings, ships, marine engineering equipment, industrial automation and control systems and equipment, machine tools, war industry, basic components, general equipment. Machinery industry is positively related to the total fixed asset investment, and is a typical investment-led cyclical industry.

Machinery industry in 2010 to remained a high degree of prosperity, mainly in the following aspects: First, strong growth in demand for machinery industry, production and sales grew fast; Second, the key machinery sub-sectors revenue and profit growth remain high, and profit growth is larger than revenue growth, show the prosperity of the industry; Third, a significant recovery in exports, but import growth exceeded export growth, narrowing the difference between imports and exports.

It is expected that by the year 2015, China's construction machinery industry sales will reach 900 billion RMB, while China's market demand for construction machinery will reach the level of 851 billion RMB.

On October 18, 2010 the State Council issued a "State Council's decision on accelerating the development of strategic new industries", the "Decision" mentioned about the high-end equipment manufacturing industry as "focusing on the development of aviation equipment for main line & branch line aircraft and general purpose aircraft, so as to form a bigger and stronger aviation industry. Promote actively the construction of space infrastructure; promote the development of satellites and their applications. Relying on key projects construction of passenger lines and urban rail transits, develop rail transportation equipment. For the development of marine resources, develop vigorously the marine engineering equipment. Strengthen the capacity of infrastructure facilities, and actively develop intelligent manufacturing equipment with digital, flexible, and system integrated features. To sum up, high-end equipment manufacturing industry includes 5 sub-sectors: aviation equipment manufacturing industry, the satellite industry, rail transport facilities industry, marine engineering and equipment manufacturing industry, and intelligent manufacturing equipment industry.