On November 25, ICT 11 officially issued the "12th Five-Year Plan" for the Development of Machinery Infrastructure, Basic Manufacturing Technology and Basic Material Industries, clarifying the development objectives and ideas of the "12th Five-Year Plan", identifying the key points and main tasks of industrial development, and putting forward relevant safeguard measures to further enhance the overall development level and international competitiveness of China's "three basic" industries. The plan proposes to focus on 11 types of mechanical foundations, including high-speed, precision and heavy-duty bearings, super-large and high-parameter gears and transmission devices, high-pressure hydraulic components and high-power hydraulic components, intelligent and high-frequency acoustic pneumatic components, and 6 types of basic manufacturing processes and 2 types of basic materials.

The supporting measures proposed in the plan are as follows: the plan proposes to continue to implement the current fiscal and taxation support policy for basic parts, to develop the key "three-base" products encouraged by the state, to implement the tax-free policy for imports of key components and raw materials, and to earnestly implement tax policies such as R&D fee deduction and accelerated depreciation of fixed assets. The plan also proposes to encourage powerful and motivated mainframe manufacturing enterprises to develop their urgently needed basic components and materials, and gradually move towards socialization on the basis of meeting their own supporting needs.

The growth rate of the machinery industry will slow down during the 12th Five-Year Plan period. In the future, there will be better plate investment opportunities in high-end equipment fields such as aerospace, intelligent equipment and so on, while there will be fewer significant investment opportunities in other mechanical sub-industries. In the future, "import substitution" is expected to form a strong driving force in some areas such as high-end mechanical foundations. The domestic market share of mechanical basic parts in China is about 65%. In 2010, the potential import substitution space for mechanical infrastructure (including foreign brand substitution) was 450.5 billion yuan. Assuming that the growth rate of mechanical basic parts industry is 12% in 2012-2015 and the self-supporting rate rises by 4 percentage points annually, the potential import substitution space of the industry is 498-379.8 billion yuan in 2011-2015, and the average annual real import substitution increment share is 81.8 billion yuan, which can increase the market growth rate of domestic enterprises by 6-8 percentage points on the basis of the whole industry growth rate.

China's mechanical infrastructure has a good market basis for industrial development. On the one hand, the output of major industrial products has been in the forefront of the world, such as automobiles, construction machinery, ships, railway vehicles, etc. On the other hand, the main domestic industrial raw materials, such as iron and steel, chemical products, are also large-scale. Therefore, how to make full use of the close relationship of the market and accelerate product upgrading has become the key to the development of basic parts manufacturing enterprises. Looking at the investment opportunities of high-end mechanical foundations, it is suggested that attention should be paid to leading enterprises in the fields of high-end bearings, gears, hydraulic components, seals and moulds.