Current Account Imbalances

Decryption tool manufacturing in China Current Situation
Consumption of homemade tools, cutting tools, carbide has reached over 50% the proportion of supply and demand structure, touch is a serious problem. The consequences of a large number of high speed steel cutting tools surplus for export is low and domestic sales, while high-performance carbide cutting tools have had to rely on a large number of import volume imports of $ U.S. 090 million between 2001 and 2005, 450 million dollars (about 3.6 billion yuan).
Developed countries, which currently represent the cutting tool carbide cutting tools of domination of the proportion of 70%. The high speed steel cutting tools at an annual rate of 1% to 2% reduction in the proportion dropped to 30%. Diamond and cubic boron nitride Superhard other cutting tools represent about 3%.
China's current annual sales of 14.5 billion of tools, the proportion of carbide cutting tools under 25%, not only with the international market, far from the cutting tool product structure, we can not satisfy the domestic manufacturing sector to the growing demand for carbide cutting tools.
China's current annual production of high speed steel, 80,000 tons, representing about 40% of total world production, consume a lot of valuable tungsten, molybdenum and other scarce resources. This blind expansion of low-level repetitive, which makes a large number of surplus production of steel knives at high speed and had to sell at low prices, leading to a large number of manufacturers of ineffective tools.
China's current annual production of 16,000 tons of carbide, but also about 40% of the total world production. However, the carbide blade to cut the highest yield of value-added products is three thousand tons, only 20%. This situation, first, caused by an insufficient supply of carbide cutting tools are absolutely necessary in the other, so that the carbide precious resources are not fully utilized.
By comparing cost-effectiveness, the annual sales income of China carbide approximately 5.6 million, Japan is only 40% of our production, but sales of up to 2.633 billion dollars U.S., its blade (knife), the proportion of up to 72%, so that resources are fully utilized, companies have also received good benefits. China tool industry should make useful suggestions.
Currently, the tool of structural imbalances in the wrong direction and demand the production tool. For example, users need a great vacuum in the carbide cutting tools, but high speed steel cutting tools are the overproduction of modern manufacturing performance tool needed gap is large but low grade standard tool is overproduction.