On December 5, the Ministry of Finance released an important notice — "Notice on Matters Related to the Standards and Implementation Policies of Domestic Products in the Government Procurement Sector (Draft for Comments)," proposing a 20% price evaluation discount for domestic products compared to foreign products.
For example, if a domestic PLC product has an original price of 1 million yuan, under the new policy, this product will receive a 20% price evaluation discount during the government procurement review process. In other words, although the actual quoted price is 1 million yuan, the product will be considered as having a price of 800,000 yuan during the evaluation, thereby enhancing its competitiveness.
The core message of this document is simple: domestic products should be "prioritized," directly placing "domestic substitution" on the agenda. The industrial control sector is abuzz with excitement. Some are cheering for the long-awaited breakthrough, while others are skeptical about how much actual benefit the policy will bring. Regardless, this policy storm is bound to stir up waves in the domestic industrial control industry.
The Hard Logic Behind the Policy
The draft for comments from the Ministry of Finance signals that domestic production should not only accelerate but also improve in quality. The introduction of price evaluation discounts, component cost ratio requirements, and the standardization of key components' domestic production… These measures are not just to reclaim market share but also to strengthen supply chain security and reduce dependence on foreign sources.
Additionally, the Ministry plans to establish requirements for the cost ratio of domestically produced components in specific products over the next 3-5 years, along with the standardization of key components and supplies. Before this, as long as a product is made in China, it will be considered a domestic product. This offers a key window for domestic substitution.
In the future, the true competition will not be "who has thicker subsidies," but "who can truly compete on technology."
The Real Status of Domestic Industrial Control: Progress or Survival in the Cracks?
Domestic industrial control products are no longer "invisible." From PLCs to HMIs, from servo drives to industrial sensors, many domestic brands have begun to climb from the low-end market to the mid- and high-end fields. Below are some domestic PLC brands:
Inovance Technology: Provides comprehensive industrial automation products including PLCs, inverters, servo drives, and servo motors. Its H3U series PLC is known for its high performance and rich features, widely used in various industrial control scenarios.
Unionscience Technology: A high-tech enterprise integrating R&D, manufacturing, and sales, its main products include domestic PLC controllers, HMI interfaces, I/O modules, and servo motor drivers. Its EC series PLC is known for its high performance and cost-effectiveness, with the fifth-generation CPU products achieving 100% domestic production, widely applied in process control and edge intelligence.
Hechuan Technology: Focuses on R&D, manufacturing, and sales of industrial automation products, including PLCs, touch screens, inverters, and servo motors. Its M-series PLCs are competitive in the small PLC market and support EtherCAT bus control, suitable for various industrial automation applications.
Although domestic industrial control started late with a weak foundation, who says latecomers cannot rise to the top? With the new policy in place, domestic brands may be facing a historic turning point in terms of market voice and resource allocation.
Where Are the Opportunities? And How Hard Are They to Seize?
Larger Market
Rapid R&D Advancement
More Stable Supply Chains
However, there are clear challenges:
Technological Gaps: Many domestic industrial control companies still lack core technologies, and only a few can match international giants.
Low Market Trust: No matter how many policy benefits exist, they cannot replace genuine user experience. Both strong technical capabilities and quality service are necessary to create a competitive edge.
How Long Can the Wind Last?
The Ministry of Finance’s intervention indeed opens a massive window for domestic industrial control products, but opportunities are always for the "prepared." Whether companies can break free from their comfort zones and transition from being "policy darlings" to "market contenders" is crucial.
Although the policy provides support, the market remains unforgiving. Will domestic industrial control brands soar with this favorable wind or fade away amid skepticism? Time will provide the answer.
