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I. Embryonic Stage: Technological Exploration Under a Planned Economy (1950-1980)

1. Technological Inception

• 1958: Beijing No.1 Machine Tool Factory collaborated with Tsinghua University to develop China’s first 3-axis CNC milling machine (Model 101), marking the starting point of China’s CNC technology—only 6 years later than the world’s first CNC machine tool invented in the US.
• During the same period: Key machine tool enterprises known as the “Eighteen Arhats” (e.g., Shenyang No.1 Machine Tool Factory, Shanghai Machine Tool Factory) initiated CNC technology research.

2. Service Characteristics

• Service Providers: In-house machining departments of military-industrial enterprises and state-owned enterprises (SOEs), serving only national defense, military industry, and heavy industry under a fully planned economy.
• Technological Status: Equipment was dominated by vacuum tube CNC systems with poor stability and anti-interference capability, limited to simple part processing without forming commercial services.

3. Key Milestones

• 1960s-1970s: Despite the impact of the Cultural Revolution, China laid out precision machine tool industries through the “Third Front Construction” and mastered technologies for 26 types of precision machine tools across 5 categories.
• 1972: Tsinghua University developed the integrated circuit CNC system (XK213), which was applied to complex part processing in the aerospace field.

II. Technology Introduction and Service Transformation Stage (1980-2000)

1. Reform and Opening-Up & Technology Import

• 1979: Jinan No.1 Machine Tool Factory cooperated with Japan’s Yamazaki Mazak to produce high-speed precision machine tools, initiating the model of “introduction-digestion-absorption-innovation.”
• During the 6th to 8th Five-Year Plans (1981-1995): China imported nearly 150 machine tool technologies and developed 81 new types of CNC machine tools, focusing on breakthroughs in CNC systems and servo drive technologies. For example, Qinghai No.1 Machine Tool Factory produced horizontal machining centers in cooperation with Japan’s FANUC, and Beijing Machine Tool Research Institute developed China’s first Flexible Manufacturing System (FMS).

2. Transformation of Service Models

• From In-house Production to External Services:
  • Mid-1980s: Some SOEs began undertaking external orders, marking the initial emergence of CNC machining services.
  • 1990s: With the influx of foreign-funded enterprises, specialized OEM manufacturers providing CNC machining services for foreign companies emerged in coastal areas.

3. Landmark Events

• 1993: Huazhong Numerical Control launched the “Huazhong Type I” CNC system, breaking foreign monopolies and reaching an internationally advanced level.
• 1999: Ningxia Shared Group established Ningxia Little Giant Machine Tool Co., Ltd. in a joint venture with Japan’s Mazak, marking the start of high-end CNC services in China.

4. Market Characteristics

• Service Objects: Primarily foreign-funded manufacturing enterprises in auto parts, electronic equipment, etc.
• Service Content: Focused on simple CNC turning and milling with low precision requirements and low added value.
• Market Structure: Foreign brands dominated the high-end market, while local enterprises were mainly engaged in low-end OEM production.

III. Market-Oriented Development and Service System Formation (2000-2015)

1. Market Launch

• 2001: China’s accession to the WTO drove rapid development of the manufacturing industry, leading to a surge in demand for CNC machining services.
• 2000-2015: The industry evolved from embryonic to initial development, characterized by “parallel technology introduction and localization, released market demand, and consolidated industrial foundation.”

2. Innovation in Service Models

• Rise of Professional CNC Machining Service Providers:
  • After 2000: A large number of professional CNC machining enterprises emerged in the Yangtze River Delta and Pearl River Delta regions, offering one-stop services from design to production.
  • Service content expanded to high-end fields such as multi-axis machining, precision machining, and special material processing.

3. Technological Upgrading and Service Improvement

• Mid-2000s: Domestic five-axis machining centers were applied in the aerospace field, such as products from Dalian Kede Numerical Control.
• Service Quality Enhancement: Enterprises began obtaining international certifications such as ISO9001 and IATF16949, with machining precision improved from 0.01mm to 0.005mm.

4. Formation of Industrial Clusters

• Around 2010: CNC machining service industrial clusters centered on the Yangtze River Delta and Pearl River Delta were formed, with Guangdong Province leading with an 18.7% market share.
• Specialized CNC industrial parks emerged, refining the industrial division of labor and forming a complete industrial chain from equipment manufacturing to machining services.

IV. Intelligent Transformation and Global Competitiveness Enhancement (2015-Present)

1. Technological Breakthroughs and Service Upgrading

• 2016: Huazhong Numerical Control launched the “Huazhong Type 8” high-end CNC system, with a localization rate of 45% in the aerospace field.
• 2021: The “Huazhong Type 9” system embedded with AI chips was released, enabling real-time optimization of machining processes.
• 2025: The “Huazhong Type 10” integrated with AI large models, supporting natural language interaction and autonomous learning, marking China’s entry into the “intelligent control” era of CNC technology.

2. Transformation of Service Models

• From Machining Services to Comprehensive Solutions:
  • Service content expanded to full-lifecycle services such as product design, process optimization, virtual commissioning, and remote monitoring.
  • The application of digital twin technology achieved a 98% accuracy rate in equipment fault prediction and a 50% improvement in machining efficiency.

3. International Market Expansion

• Service objects expanded from domestic to high-end markets in Europe, America, Japan, and South Korea, shifting competition from price to technology and service.
• China has become the world’s largest CNC machining service base, with a market size exceeding 50 billion RMB in 2025.
• Gree’s “High-Speed Dual Five-Axis Gantry Machining Center” won the Gold Medal at the Geneva International Exhibition of Inventions, a pioneering achievement for Chinese machine tool enterprises.

4. Market Structure

• State-owned leading enterprises (e.g., Shenyang Machine Tool, Qinchuan Machine Tool) account for 35% of the market share, while private enterprises (e.g., Chuangshiji, Huazhong Numerical Control) have emerged in high-end niche markets.
• Foreign brands still dominate 37% of the high-end market, but the gap is continuously narrowing, with the market share of domestic high-end systems reaching 30% (2025).

V. Development Characteristics and Future Trends

1. Development Characteristics

• Policy-Driven: Continuous national strategic support for industrial upgrading, from the 6th Five-Year Plan to “Made in China 2025.”
• Dual-Driven by Technology and Market: A gradual development path of “technology introduction → digestion and absorption → independent innovation → service upgrading.”
• Industrial Cluster Effect: The Yangtze River Delta and Pearl River Delta contribute 62% of the national output value, forming a complete industrial chain ecosystem.

2. Future Trends

• 2030 Goal: The localization rate of high-end CNC systems will reach 80%, with in-depth application of AI, digital twin, and other technologies.
• Service models will transform into “intelligent manufacturing service providers,” offering the new business form of “Manufacturing as a Service (MaaS).”
• Green manufacturing and sustainable development will become the industry mainstream, with energy conservation, emission reduction, and resource recycling as important development directions.

Summary