In 2006, the country will continue to focus on organizing a number of major industrial core technology research projects and provide policy support for the selection of the first domestically produced and first set of equipment. This was mentioned in the “Report on the Implementation of the National Economic and Social Development Plan for 2005 and the Draft National Economic and Social Development Plan for 2006” submitted by the National Development and Reform Commission to the General Assembly for consideration during the two sessions.

According to officials from the National Development and Reform Commission, after more than 50 years of development, China’s equipment manufacturing industry has accounted for more than 7% of the world’s share, ranking fourth in the world. It has become a veritable equipment manufacturing country, but the localization of key equipment has not been ideal. Take the petrochemical industry as an example, the localization rate of key equipment in the industry is relatively low. Some companies are afraid of using localized equipment like the first to eat crabs. However, with the scale of oil refining, ethylene and other industries, the lack of autonomous core technologies for large-scale equipment has become a serious threat to the safety of China's petrochemical industry. Therefore, we must base ourselves on domestic production and make up our minds to change the current situation in which major technical equipment is too dependent on imports. To this end, since last year, the National Development and Reform Commission has concentrated its efforts and started to develop four million tons of ethylene, Yizheng 1 million tons of PTA and other projects in Tianjin, Zhenhai, Fushun, and Chengdu for domestic production, independently developing and manufacturing millions of tons of large scale Ethylene and PTA kits. At present, in addition to the one million tons of ethylene localization support project has been started, large-scale hydrogenation reactors have been made domestically, and some high-pressure units in the process are also under development. The rate of localization of ethylene in Sichuan, which was just approved by the National Development and Reform Commission, reached 85%. Four out of 12 sets of equipment use domestic technology completely; three sets of domestic and foreign technology selection are preferred and domestic technology is preferred; five sets of foreign technologies are used, of which ethylene equipment is only Introduce technology packages. This will be the first time that PetroChina's ethylene technology has been completely digested by foreign technology for engineering design.

The report prepared by the National Development and Reform Commission and submitted to the NPC deputies mentioned that in 2005 major progress was made in the domestic production of major key technologies and equipment, including one million tons of ethylene equipment localization projects. In 2006, the state will focus on organizing a number of major industrial core technologies in energy, equipment, and other fields, setting up venture capital investment guidance funds, and providing policy support for the selection of the first domestically produced and first set of equipment.

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