Looking into the market conditions of the world machine tool industry, the fluctuations in the industry are caused by a decrease in demand as a result of the economic cycle fluctuations of advance industrialized countries. Moreover, China will become a world factory in the future, so the cluster effect of the manufacturing industry can be used to analyze the growth of the machine tool market in the future.

As the world's focus is on the China market, how Taiwan, the world's second largest importer, with the control of most of the advantages, can put itself into a position that cann't be challenged and also establish a second production base will be the major focus for business strategies in the future.

This study will primarily be based on the market position of Taiwan in the China market, and moreover, the adjustments are made by other competitors and China, and changes in the market demand are observed, so as to provide suggestions for strategy management. The first this study starts from the current status of the world machine tool market demand, and through the market status and demand distribution, Taiwan machine tools achievement in the world market will be analyzed. Lastly, through an understanding of the developmental status of Taiwan machine tool industry, operations arrangement and trends will be outlined. The second of the study is on the China market. Beginning from a general understanding of the demand in the China machine tool market and the developmental status of China machine tool industry, together with the status of international machine tool corporations in the China market, the market segmentation between Taiwan and other countries in the China market will be compared.

Then, based on the China market, the challenges that Taiwan machine tool industry has faced amidst the regional competition will further be analyzed. First, the competitiveness of Taiwan machine tools will be analyzed from the perspective of market shares. Among these competitors, the most notable threat to Taiwan industry is from South Korea and China. As a result of this, in the analysis, the threat from South Korea and China to Taiwan machine tools industry has been further studied, at the same time looking back at the key factors of Taiwan industry that are to be currently overcome amidst these threats in Taiwan machine tool industry.

Amidst the great business opportunities and challenges in the China market, starting from the market conditions of the China market and Taiwan machine tool industry, this study compares the advantages and disadvantages across the Taiwan Straits, from the perspective of factor conditions, support systems, market demand, policies, laws and regulations, etc. and then derives how the value systems of the industry cooperate with the environmental conditions of the industry development, with the hope to boost the added values of Taiwan machine tool industry.

===Content===
The current condition of the global machine tools market
I. Regarding the demand side
II.The Largest Machine Tools Market-China

The current condition of the machine tools industry in Taiwan
I.A general description on the production and sale of machine tools
II.The import and export of the machine tools industry of Taiwan
III. Export markets

The Current Situation of the China Mainland's Machine Tools Industry
I.The Structure of the Industry
II.The Structure of Products
III.The Change of the Structure of the Machine Tools Industry

Trade between Taiwan and Mainland China
I.Trade interchange
II.Investment in China

Challenge for Taiwan's Machine tools Manufacturers in Mainland China
I. Fast-growing Export from Japan and Germany to China
II. Threat from Korea
III. Challenge from Mainland China

===Figure List===
Figure 1-1 The global machine tools market from 1981 to 2004
Figure 1-2 Growth Rates of the main machine tools markets of the world
Figure 1-3 The monthly sales figures of metal cutting machine tools in Japan in 2004
Figure 1-4 Japanese Metal Cutting Machine Tools Market and Import-and-Export Value over the Years
Figure 1-5 CECIMO Machine Tools Expenditure Values of 1980~ 2004
Figure 1-6 Distributing Situation of Global Machine Tools Market
Figure 1-7 CECIMO Machine Tools Manufacturing Values of 1980~2004
Figure 1-8 CECIMO Machine Tools Mainly Manufacturing Countries of 2004
Figure 1-9 Situation of Chinese Machine Tools Import and Export
Figure 2-1 The production outputs of the machine tools industry of Taiwan from1986 to 2004
Figure 2-2 The import and export data of machine tools from 1997 to 2004
Figure 2-3 The trend in the production values of the machine tools exported from Taiwan from 1997 to 2004
Figure 2-4 The production values of the machine tools exported from Taiwan to several regions from 1997 to 2004
Figure 2-5 The production values of the machine tools exported from Taiwan to several regions from 1997 to 2004
Figure 3-1 The Profit Rates of Mainland China's Metal-Cutting and Metal-forming Machine Tools Industries 2001~2004
Figure 3-2 The Distribution of the Total Sales Income among the Three Scales of Enterprise Organizations of Mainland

China's Metal-Cutting and Metal -forming Machine Tools Industries 2004
Figure 3-3 The Output of Mainland China's Cutting Machine Tools and the Shares of Various Products in 2003
Figure 3-4 The Output and Output Values of the Various Products of Mainland China's forming Machine Tools in 2003
Figure 4-1 Import values of machine tools of China from 1992 to 2005
Figure 4-2 Cutting and forming machine tools
Figure 4-3 The values of exported from Taiwan to China of machine tools
Figure 4-4 Market shares of the main countries in the Chinese market from 1992 to 2004
Figure 4-5 Market shares of main countries in terms of export machine tool market of China in 2005
Figure 4-6 Trend in the export market shares of machine tools in China in the past few
Figure 5-1 1995~2004, Major Export Countries of Japanese machine tools
Figure 5-2 1998~2004 Export of Japanese Machine tools to Mainland China
Figure 5-3 Values of Machines exported to Mainland China by Taiwanese, Japanese and Korea in 2004
Figure 5-4 1992~2003 production volume of China NC machines
Figure 5-5 1996~2003 price gap between Chinese importing and exporting machines

===Table List===
Table1-1 The machine tools sales statistics of the US from 1996 to 2004
Table2-1 The output values and quantities of machine tool produced in Taiwan from 2002 to 2004
Table2-2 The type of machine tools imported of Taiwan in 2004
Table2-3 The export destiny countries for the machine tools exported from Taiwan
Table3-1 Characteristics comparison between MRAM and mainstream memory
Table3-2 An Estimation of the Output of Mainland China's Machine Tools in 2004
Table4-1 Analysis of metal cutting machine firm in China, 2004
Table4-2 Analysis of metal forming machine firm in China, 2004
Table4-3 Estimated turnover for major foreign invested machine tool companies, China, 2004.
Table4-4 Estimated turnover for Taiwan invested companies, China, 2004.
Table5-1 Shows of top 10 countries of import and export of Germany Machine tools in 2004
Table5-2 21st century outlook of Korean NC machine tools