Since the construction machinery industry broke away from the high-speed growth of its "golden decade," the vast majority of enterprises have invariably adopted an extensive, land-grabbing growth model, engaging in frenzied capacity expansion. Although all made hefty profits, as the industry's "winter" descended, the good days came to an end and a series of chronic problems surfaced. Despite repeated calls to eliminate overcapacity, results have remained minimal.

　　Demand in the construction machinery market shrank sharply, and coupled with the economic slowdown at home and abroad, the industry entered a 26-month-long period of negative growth. The consequences of overcapacity became glaringly obvious, competition among enterprises intensified by the day, and a series of unconventional tactics emerged one after another—financial leasing, credit sales, mortgage sales—culminating in zero-down-payment offers! As a result, not only were enterprises unable to be pulled out of the mire of overcapacity, but a series of complications such as vicious competition and surging accounts receivable were bred instead. China's construction machinery industry has since fallen into a vicious circle, while the process of eliminating overcapacity still stalls.

　　China's construction machinery overcapacity situation is so severe, yet essential core components—especially high-end hydraulic elements—have long relied on imports. This not only causes nearly 90% of the industry's profits to be swallowed by foreign enterprises, but also indirectly subjects the production capacity of Chinese host products to foreign restrictions. For example, if the imported hydraulic components required for a certain model of excavator are not supplied in place, then such products cannot be produced—and that is where the "pain of being choked by the throat" comes from.

　　Looking back, what have construction machinery enterprises actually been busy with in recent years? Busy handing over ninety percent of the profits, yet fighting tooth and nail for the remaining ten percent! Isn't this a case of losing the watermelon and picking up sesame seeds? If China's construction machinery industry wants to blaze a broad, blossoming path out of the bitter winter, it must take dual measures: resolve to root out overcapacity and improve China's R&D capabilities for core components of construction machinery!