At present, China's cutting tool companies still highlight several fatal problems in the development process. If they are not adequately addressed and dealt with improperly, they will seriously affect the development and advancement of enterprises.

Grasping the "low" and "high" technological content is low at this stage, carbide cutting tools have dominated the tool type in developed countries, the proportion of up to 70%. And high-speed steel tools are at 1% to 2% per year speed Shrinking, the proportion has now fallen below 30%.

Luo Baihui, secretary-general of the International Mould & Hardware & Plastics Industry Suppliers Association pointed out that carbide cutting tools have become the main tool required by processing companies in China and are widely used in automobile and parts production, mold manufacturing, aerospace and other heavy industries. In the field, however, China's cutting tool companies have blindly and massively produced high-speed steel knives and some low-grade standard cutting tools. They have not taken into account the market saturation and the needs of enterprises, and ultimately put the high-end and high-end cutting tool market with high added value and high technology content. "Hand in hand" to foreign companies.

According to statistics, the current annual sales of cutting tools in China is about 38.5 billion yuan, of which the proportion of cemented carbide tools is less than 25%, but the carbide cutting tools required by the domestic manufacturing industry already account for more than 50% of the cutting tools. Blind production has already failed to meet the growing demand for carbide cutting tools in the domestic manufacturing industry, thus forming a vacuum in the mid-to-high end market and eventually being occupied by foreign companies.

Low value-added products In 2007, of the 16,500 tons of hard alloys produced in China, 4,500 tons were used for the production of cutting tools. The number was comparable to that of Japan. However, the value of finished tools is only US$800 million, which is far less than Japan’s US$2.5 billion. This fully shows that the overall production level of domestic high-performance cemented carbide cutting tools is still quite different from that of foreign countries.

Therefore, under the premise that domestic companies cannot meet the market demand, the demand for manufacturing will have to be solved by relying on a large number of imports. According to statistics, the annual sales growth of major foreign companies in China's high-end tooling market has reached 30%, which exceeds the average annual growth rate of domestic tools.