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China’s cutting‑tool industry occupies the low end of the global mold‑making sector, a situation largely attributable to the industry’s relatively low technological level and the ongoing price wars. To achieve sustainable growth, the cutting‑tool sector must continuously increase R&D investment, enhance its technological content, and develop products with strong core competitiveness. Only by intensifying product‑development efforts can it fundamentally transform the current competitive landscape.

Why has the domestic cutting‑tool industry been locked in a price war? At present, there are many companies engaged in tool manufacturing in China, but most are small‑scale, operating largely as makeshift workshops with little technological sophistication. These smaller firms primarily produce imitations, leading to an increasing glut of homogeneous mid‑ and low‑end tools. As a result, toolmakers are grappling with overcapacity and mounting inventory. To boost sales, they keep slashing prices. When several firms cut prices one after another, the entire industry ends up in a bind, with shrinking profit margins. With profits continually squeezed, companies lack the funds needed for research and development.