In the early stages, machine tool enterprises establish their international business based on core resources and comparative advantages. They then continuously expand and extend their industrial chains, enhance their overall competitiveness, transition from specialized operations to integrated operations, and evolve from single-product service providers to comprehensive product and service providers.

What are the five major misconceptions in the international development of the machine tool industry?

    Misconception One: Internationalization must start with marketing. Enterprises not only need to begin with product marketing and service delivery, but also need to absorb advanced foreign innovative technologies, international management experience, and so on.

    Misconception Two: Internationalization is more important than the domestic market. Machine tool enterprises should not ignore the domestic market in pursuit of a thriving international market. Chinese machine tool enterprises have not truly won in their home market, which is the biggest obstacle to international operations.

    Misconception Three: Mergers and acquisitions are the best path to internationalization. If operated properly, suitable international mergers and acquisitions can be a feasible way to leverage complementary strengths, learn from each other's advantages, and achieve a win-win outcome. However, cross-border mergers and acquisitions also hide huge risks, especially the integration risks after the merger.

    Misconception Four: Pursuing Full-Scale Internationalization in Operations. Machine tool enterprises, in their early stages, should establish international business based on core resources and comparative advantages. Subsequently, they should continuously expand and extend the industrial chain, enhance overall competitiveness, transition from specialized operations to integrated operations, and evolve from single-product service providers to comprehensive product and service providers.

    Misconception Five: International brands becoming localized in China or Chinese brands going global. Three scenarios deserve attention: First, hastily replacing the brand—quickly rebranding acquired foreign brands with Chinese labels after mergers and acquisitions; Second, rushing to innovate overseas brands...