In many previous articles, I have pointed out that one way out for China's construction machinery industry is to set sail and participate in global competition, seeking larger markets overseas—what industry insiders call the "Blue Ocean Strategy."

    For Chinese construction machinery enterprises currently operating at a low ebb, the Blue Ocean Strategy offers the following benefits:

    First, Chinese construction machinery enterprises can fully participate in international competition, using the pressure of the international market to push China's construction machinery giants onto the path of transformation and upgrading, especially by continuing to raise the technological content of their products. In the real world, many cutting-edge foreign technologies remain embargoed against China, but by setting sail, Chinese companies can, through mergers and acquisitions and controlling stakes, integrate advanced foreign technology and management expertise into their own DNA. No wonder that in the recently popular equipment manufacturing documentary "Great Power Heavy Equipment," experts from various fields and corporate leaders all expressed that overseas M&A is a viable route to rapidly acquiring cutting-edge equipment manufacturing technology.

    We have seen that from 2008 to 2012, the three leading Chinese construction machinery companies—Zoomlion, Sany Group, and XCMG—successively acquired and took controlling stakes in famous foreign concrete machinery manufacturers. Chinese construction machinery enterprises leapt to become the world's strongest force in the concrete machinery sector, and the 101-meter longest-boom concrete pump truck became a new symbol of Chinese equipment manufacturing. On August 21, CSR Beijing Times completed its acquisition of Germany's E+M company. According to a reporter from HC360 Construction Machinery Network, Germany's E+M is a long-established company with nearly a century of history and enjoys a world reputation in the fields of drilling engineering and drilling machinery. The target of CSR Beijing Times' acquisition was its machinery business assets; the newly formed company's scope of business mainly covers the R&D and trial production, manufacturing, sales and service of UH-series multifunctional truck-mounted drilling rigs and related business. And CSR has successfully attracted the favor of many industry insiders and customers at the BICES 2013 exhibition and the 2013 Water Expo with the flagship product of Germany's E+M—the fully hydraulic UH3 multifunctional truck-mounted drilling rig—thanks to its outstanding quality and striking paintwork. According to relevant technical personnel at CSR Beijing Times, fully hydraulic truck-mounted drilling rigs are mainly used in construction for deep water wells, geothermal extraction, mine rescue, geological exploration and other fields. The UH3 fully hydraulic multifunctional truck-mounted drilling rig exhibited this time is a top-drive drilling rig with a high configuration, featuring mobility, flexibility and high construction efficiency, and it adopts multiple drilling processes such as air drilling, mud drilling and foam drilling. The equipment is provided with air and water pipe interfaces and can be matched with relevant auxiliary equipment according to different construction processes. It is conceivable that in the coming period, CSR will inevitably integrate more of the advanced technological genes of German products into its own piling machinery products, and CSR's piling machinery products will thereby reach a new level and a new stage. Second, going out into the blue ocean can enable more Chinese construction machinery enterprises to find more, better, larger markets that are more worth anticipating and more sustainable.

    In recent years, many Chinese construction machinery enterprises have already expanded their business to every corner of the globe, and Chinese construction machinery equipment has been used in every region of the world, especially in emerging construction markets such as Russia, Brazil and Africa, where construction is at its peak and Chinese construction machinery products have ample scope for use. Most recently, ZPMC announced that the company had recently reviewed and approved the "Proposal on Establishing Overseas Subsidiaries," under which the company will establish subsidiaries in eight locations—Spain, the United States, Brazil, South Africa, Australia, India, Singapore and Malaysia—to build a global network, with a total investment of no more than US$4 million. Among these, joint ventures are planned in Brazil, Singapore and Malaysia, while wholly owned subsidiaries are planned elsewhere. And as a giant of China's construction machinery industry, XCMG Group's XCMG Automobile Company is showing strong growth momentum in overseas markets. Recently, the company once again opened the door to the Southeast Asian market, successfully renewing an order for 30 dump trucks and writing new glory in overseas markets.

    In summary, for Chinese enterprises in any field, going global is one of the opportunities for China's future economic growth, and the Blue Ocean Strategy will inevitably open a new path for China's construction machinery industry.